Stocks see-sawed Monday as investors were encouraged by strong German factory data but the market remained jittery. Industrials and technology were the biggest decliners.
Among the early buzz in the market, there is some speculation that the Fed may tinker with the discount rate at its meeting today.
German industrial orders rose more than expected in April, helping to assuage some concerns about Europe, particularly after Hungary rattled the market last week with news of a possible default.
The Dow Jones Industrial Average toggled between positive and negative territory, unable to break back above 10,000.
This came after the Dow ended below 10,000on Friday and in correction territoryafter the May jobs report fell well short of expectations, rattling a market already jittery after Hungary warned of a possible default.
The S&P 500and Nasdaq were also lower, with the tech-heavy Nasdaq the hardest hit. The CBOE volatility index, widely considered the best gauge of fear in the market, ticked higher.
Trying to do a little damage control, Hungary's Economy Minister Gyorgy Matolcsy told CNBC on Monday that "It is blatant that Hungary is not Greece."
On Sunday, the chairman of the Eurogroup of euro zone finance ministers, Jean-Claude Juncker, dismissed fears of a Hungarian debt crisis and said the current level of the euro did not worry him.
Bank of America shares skidded after Rochdale analyst Dick Bove cut his price target on the stock to $22.80 from $27.50.
Goldman Sachs slipped as the brokerage was subpoenaed by the FCICafter failing to comply with a request for documents and interviews.
US-traded shares of BP advanced after the company made its first significant progresson containing the Gulf oil spill and announced that a second containment system would be available in mid-June.
Shares of other companies involved in the spill, Halliburton and Transocean , were also higher.
Apple shares rose ahead of the unveiling of the company's latest iPhone, expected today.
Bristol-Myers Squibb shares jumped following news over the weekend that its experimental drug for skin cancer had achieved positive results.
And Pfizer's CEO said the company has launched a separate business focused on oncology.
CVS shares skidded after Walgreen said it wouldn't participate in any new drug plans picked up by benefits manager CVS Caremark, saying it favors CVS drugstores over other chains.
Asian stock markets tumbled on Monday, after Wall Street on Friday closed at its lowest level since February, spooked by disappointing U.S. jobs data and concerns over Hungary's debt problems. The Nikkei was down 380.3 points to 9,520.8 points after touching an intraday low of 9,502.62. The index posted its biggest daily percentage slide since late March 2009
Oil briefly fell below $70 per barrel but erased most of its losses. Weak jobs data dampened the forecast level of demand over the coming months.
On the M&A front, Spanish health-care company Grifols has agreed to buy U.S.-based Talecris Biotherapeutics, which makes plasma-based protein therapies, for $3.4 billion.
There are no major economic data before the bell. At 3 pm New York time, April’s consumer credit will be announced, with a consensus of economists at Briefing.com forecasting a decrease of $2.0 billion, down from an increase of $2.0 billion for March.
Consumer credit expectations have been volatile in recent months as lenders fail to relax restrictions on lending, and consumers demand less credit. In March, available credit increased by $2.0 billion, and beat expectations of a decline of $3.9 billion.
— Reuters contributed to this article.
MONDAY: Apple developers conf.; conference board employment trend index; consumer credit
TUESDAY: Primary & special elections; NFIB small business optimism index; McDonald's May sales data; 3-yr note auction
WEDNESDAY: Weekly mortgage apps; wholesale trade; 10-yr note auction; Fed's beige book; Bernanke speaks; Fed's Lacker speaks; Caterpillar shareholders meeting
THURDSAY: International trade; weekly jobless claims; quarterly services survey; 30-yr bond auction; Treasury budget; Earnings from: Del Monte Foods, National Semiconductor
FRIDAY: Fed's Plosser and Kockerlakota speak; retail sales; consumer sentiment; business inventories; S&P index rebalancing details announced
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