After showing a lack of direction throughout much of the trading day, stocks ended Monday's trading mostly lower. The major averages all closed firmly in negative territory, extending the downward move seen over the course of the previous four weeks.
The weakness that emerged among stocks came as traders continue to express uncertainty about the global economic outlook, particularly due to recent worries about European credit conditions.
Traders remained on the sidelines for most of the day amid a lack of significant economic news as well as a light day on the earnings front. With the earnings season winding down, Hasbro (HAS) and CVS Caremark (CVS) were among the few well known companies that reported their quarterly results.
Shares of Hasbro (HAS) closed up by 12.7 percent after the toy maker reported fourth quarter net earnings that surged up 77 percent to $165.56 million or $1.09 per share from $93.58 million or $0.62 per share in the year-ago quarter. Analysts had expected the company to earn $0.81 per share.
Hasbro also reported net revenues for the quarter of $1.38 billion, up 12 percent from $1.23 billion in the same quarter last year. On average, analysts had estimated revenues of $1.34 billion.
Additionally, CVS Caremark reported fourth quarter net income that rose to $1.05 billion or $0.74 per share from $949 million or $0.65 per share in the same quarter last year. Excluding items, the company reported earnings of $0.79 per share, a penny above analyst estimates.
The drug store operator also said its net revenues increased to $25.82 billion from $24.14 billion in the fourth quarter of 2008. Analysts had a consensus revenue estimate of $26.22 billion for the quarter.
Meanwhile, CIT Group (CIT) edged down by 0.5 percent after it appointed former Merrill Lynch CEO John Thain as its Chairman and CEO. Thain will replace Peter Tobin, who was appointed on an interim basis after long-time CEO Jeffrey Peek resigned on January 15th.
Thain was ousted from Bank of America (BAC) about a year ago after investors expressed displeasure over the bonuses paid to executives at Merrill Lynch and his lavish spending on redecorating his office when the company was grappling with huge losses.
The major averages accelerated to the downside going into the close, ending the session near their worst levels of the day. The Dow closed down 103.84 points or 1.0 percent at 9,908.39, the Nasdaq fell 15.07 points or 0.7 percent to 2,126.05 and the S&P 500 lost 9.45 points or 0.9 percent to close at 1,056.74.
Sector News
Gold stocks turned in some of the market's worst performances, with the weakness in the sector coming in spite of an increase by the price of gold. The NYSE Arca Gold Bugs Index fell 3.8 percent even though gold for April delivery closed up $13.40 at $1,066.20 an ounce.
Significant weakness also emerged among software stocks, as reflected by the 2 percent loss posted by the NYSE Arca Software Index. The loss extended a recent downward move by the index, which ended the session at a three-month closing low.
SAP AG (SAP) helped to lead the sector lower after announcing the resignation of CEO Leo Apotheker, who will be replaced by two Co-CEOs, Bill McDermott and Jim Hagemann Snabe. Shares of SAP closed down 5.8 percent, at their worst closing level in over six months.
Most of the other major sectors also moved to the downside over the course of the trading day, with commercial real estate, steel, chemical, and banking stocks posting notable losses.
On the other hand, housing stocks managed to hold onto some of their earlier gains, resulting in a 0.8 percent advance by the Philadelphia Housing Sector Index.
Dow Components
Nearly all of the thirty Dow components ended the day in negative territory, contributing to the steep loss posted by the blue chip index.
Bank of America (BAC) was the biggest percentage decliner in the Dow, with the financial giant closing down 3.5 percent. With the loss, shares of Bank of America ended the session at their worst closing level in six months.
Shares of American Express (AXP) also showed a significant downward move, ending the day down 2.8 percent, at a three-month closing low. Travelers (TRV), Caterpillar (CAT), United Technologies (UTX), and DuPont (DD) also posted notable losses.
On the other hand Home Depot (HD) turned in a strong performance on the day, with the home improvement retailer closing up 2.2 percent. Hewlett Packard (HPQ) also posted a moderate gain.
Other Markets
In overseas trading, economic uncertainty contributed to weakness in most of the major stock markets in the Asia-Pacific region, with Japan's Nikkei 225 falling by 1.1 percent and Hong Kong's Hang Seng Index closing down by 0.6 percent.
Meanwhile, the major European markets all ended the day higher after seeing some volatility over the course of the session. The French CAC 40 Index and the German DAX Index rose 1.2 percent and 0.9 percent, respectively, while the U.K.'s FTSE 100 Index closed up by 0.6 percent.
In the bond market, treasuries saw moderate weakness after showing a notable upward move in the latter part of last week. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, closed up 4.6 basis points at 3.592 percent.
Looking Ahead
Tuesday, trading could be impacted by the release of a Commerce Department report on wholesale inventories in the month of December. Economists expect the report to show that inventories rose by 0.5 percent following a 1.5 percent increase in November.
Traders may also keep eye on the results of the Treasury Department's auction of $40 billion worth of three-year notes, with the results of the auction due to be announced at 1 am ET.
On the earnings front, Electronic Arts (ERTS), Hartford Financial (HIG), and Vulcan Materials (VMC) are among the companies due to release their results after the close, while Coca-Cola (KO), Biogen Idec (BIIB), and Pulte Homes (PHM) are among those due to report before the start of trading on Tuesday.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.