Stocks Inch Lower, Auto Sales Disappoint -- U.S. Commentary

(RTTNews) - U.S. stocks began the second quarter on a lackluster note Monday, following downbeat auto sales and manufacturing data. Investors were hesitant ahead of earnings season and Friday's crucial U.S. jobs report for March.

Traders are also likely to keep a close eye on the release of the minutes of the latest Federal Reserve meeting on Wednesday, looking for clues about the outlook for interest rates.

The S&P 500 fell 4 points, or 0.2%, to close at 2,357 and the Dow Jones Industrial Average dropped 12 points to end at 20,650. The Nasdaq Composite Index lost 17 points, or 0.3%, to close at 5,894.

In economic news, activity in the U.S. manufacturing sector continued to expand in the month of March, according to a report released by the Institute for Supply Management, although the pace of growth slowed compared to the previous month.

The ISM said its purchasing managers index dipped to 57.2 in March from 57.7 in February.

The Commerce Department said that construction spending rebounded in the month of February. The report said construction spending climbed by 0.8 percent to an annual rate of $1.193 trillion in February.

Vehicle sales in March fell to the lowest level in more than years, down to a seasonally adjusted annual rate of 16.62 million from 17.58 million in February. Ford was down 1.7 percent and Chryler tumbled 4.8 percent.

Weakness also emerged among financial stocks, with the NYSE Arca Broker/Dealer Index and the Dow Jones Banks Index in the red.

Imagination Technologies Group Plc (IGNMF,IMG.L) plunged more than 60 percent after its largest customer and minority stakeholder Apple Inc. (AAPL) has decided not to use its intellectual property in new products.