Stocks slip over economy worriesNEW YORK (AP) — Stocks slumped to a weak finish Monday as lingering worries about the economy overcame optimism from a fresh round of corporate dealmaking.
NEW YORK (AP) — Stocks slumped to a weak finish Monday as lingering worries about the economy overcame optimism from a fresh round of corporate dealmaking.
Stocks had an early lift after Hewlett-Packard Co. bid 33 percent more than rival Dell Inc. for a data storage provider, but the gains faded quickly.
The Dow Jones industrial average was up as much as 91 points in early trading but turned mixed for much of the day. A slump in the final half-hour of trading left the Dow with a loss of 39 points.
Despite the positive deal news, a number of worries about the economy are keeping a lid on the market, especially a reluctance among companies to create jobs. Stocks had a two-day selloff late last week after first-time claims for unemployment benefits jumped to their highest level since November.
“Companies are not hiring because they don’t know the rules of the game,” said. Frank Ingarra, co-portfolio manager of Hennessy Funds. “When you don’t know the rules, you pack up and go home.”
Ingarra said companies are hesitant to hire because of uncertainty surrounding costs tied to recently passed financial regulation and health care reform. The possibility of rising taxes also has companies worried about consumption, he said.