Stocks ended slightly lower on Monday as gains in consumer-related stocks, including tobacco shares, were offset by losses in the energy sector. þþShares of Coca-Cola and Procter & Gamble were two of the Dow Jones industrial average’s best performers. Coca-Cola rose 1.6 percent to $51.08, and Procter & Gamble gained 1.4 percent to $60.62. þþThe Dow Jones dropped 5.29 points, or 0.05 percent, to 10,138.52. The Standard & Poor’s 500-stock index slipped 2.19 points, or 0.20 percent, to 1,074.57. The Nasdaq composite index shed 2.83 points, or 0.13 percent, to 2,220.65. þþThe S.& P. Consumer Staples index advanced 1.1 percent. þþConsumer shares rose after the government said that personal spending increased moderately in May, exceeding expectations, after being flat in April. þþTobacco companies rallied after the Supreme Court rejected an attempt by the federal government to get billions of dollars in damages from the tobacco industry. The Altria Group gained 3.3 percent to $20.34, and Reynolds American rose 4.1 percent to $53.45. The Dow Jones tobacco index rose 1.8 percent. þþThe spotlight, however, was on the consumer as investors and analysts waited for further evidence that consumer spending, which accounts for two-thirds of economic activity, would show greater strength and propel broad growth. þþ“What has been driving the market higher has been expectations that the good manufacturing recovery we’ve seen is going to take root and drive the whole economy forward,” said Peter Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Ill. þþ“But the big concern there is, the consumer has to be the one to step up to the plate and make that happen.” þþBut Wall Street’s earlier advance was short-circuited by weakness in the energy sector, as crude oil futures fell as fears Tropical Storm Alex would disrupt production in the Gulf of Mexico eased. Exxon Mobil shares dipped 1.1 percent to $58.47. þþAmong the bright spots in the energy sector, Noble, the owner of a major fleet of offshore drilling rigs, gained 2.5 percent to $30 after announcing it would buy Frontier Drilling, a privately held company in Norway, for $2.16 billion. þþAfter the closing bell, 3M gained 1 percent to $79.75 as the diversified manufacturer announced a second-quarter sales forecast of $6.6 billion to $6.75 billion. þþInterest rates were lower. The Treasury’s benchmark 10-year note rose 25/32, to 104 3/32, and the yield fell to 3.02 percent, from 3.11 percent late Friday. þ
Source: NY Times
