Major stock gauges slip, led by Nasdaq composite, as investors step back after recent rally. November 28, 2005: 10:42 AM EST
NEW YORK (CNNMoney.com) - Stocks slumped Monday morning, as investors bailed out of energy, tech, retail and homebuilders following a five-week advance.
The Nasdaq composite (down 17.08 to 2,245.93, Charts) lost 0.6 percent nearly an hour into the session. The Dow Jones industrial average (down 17.84 to 10,913.78, Charts) and the broader S&P 500 (down 5.79 to 1,262.46, Charts) index both saw smaller declines.
The recent rally hit a roadblock Monday morning, amid selling in a variety of sectors.
Oil stocks slumped, including Exxon Mobil (down $0.60 to $59.51, Research) and ConocoPhillips (down $1.03 to $62.97, Research). The Amex Oil (down 17.35 to 991.96, Charts) index fell 1.4 percent.
Homebuilders slipped too, sending the Dow Jones Home Construction (down $19.95 to $941.98, Research) index down by 2 percent. Adding to the weakness in the sector was a morning report showing the pace of existing home sales slowed more than expected in October.
Investors also kept an eye on reports about the key holiday shopping period.
Reports from retailers and the National Retail Federation suggests a strong start to the season, which unofficially kicked off Friday, the day after Thanksgiving. Consumers are expected to continue their shopping frenzy online today, on what analysts are calling Cyber Monday.
Whether the strong early pace of buying will continue remains to be seen. (Full story.)
Both retailers and Internet e-tailers slipped.
Yahoo! (down $1.31 to $40.82, Research) lost 3 percent after both S&P and Legg Mason downgraded the stock on concerns about valuation.
The Goldman Sachs Internet (Charts) index lost 1.2 percent.
Market breadth was negative. On the New York Stock Exchange, losers beat winners nine to five on volume of 260 million shares. On the Nasdaq, decliners topped advancers two to one on volume of 350 million shares.
Stocks gained Friday in a shortened post-Thanksgiving session. A five-week advance has sent the S&P 500 and the Nasdaq to 4-1/2 year highs and the Dow 30 just below 4-1/2 year highs.
U.S. light crude oil for January delivery fell $1.01 to $57.70 a barrel on the New York Mercantile Exchange.
Treasury prices gained, lowering the yield on the 10-year note to 4.41 percent from 4.43 percent Friday. Treasury prices and yields move in opposite directions.
The dollar fell versus the euro and was little changed versus the yen.
COMEX gold rose $2.40 to $498.80 an ounce.
In global trade, major Asian and European markets mostly ended higher.
DOW Price at posting:
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