US STOCKS-Wall St tumbles, S&P’s lowest close in 7 months

* United Tech, Caterpillar lead Dow lower

* Google falls after Conn. AG’s letter, Goldman slides

* BofA drags on Dow, Countrywide unit to pay $108 mln

* Dow off 1.2 pct, S&P 500 off 1.4 pct, Nasdaq off 2 pct
(Updates with context on S&P 500’s close)

By Leah Schnurr

NEW YORK, June 7 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) fell on Monday,
taking the S&P 500 to its lowest close in seven months, as
industrials and technology shares fell and investors stayed on
their heels after last week’s payrolls figure discouraged

The Nasdaq fared the worst as investors unloaded positions
in the most liquid large-cap technology shares. Research in
Motion Ltd (RIM.TO: )(RIMM.O: ) fell 5.2 percent to $56.56 on
worries about the BlackBerry’s sales and after the
introduction of Apple’s latest iPhone. Apple Inc (Read more about Apple stock future.) (AAPL.O: ) lost
1.9 percent. For details, see [ID:nN07198138]

The S&P 500 is down 13.7 percent from its April 23 closing
high for the year, firmly in correction territory. The
benchmark index breached a key technical support level around
1,060 late in the afternoon.

“You have to break this downside momentum before you can
feel comfortable wading into this market,” said Bruce Bittles,
chief investment strategist of Robert W. Baird & Co in

On Friday, the major U.S. stock indexes slid more than 3
percent after the weaker-than-expected May non-farm payrolls
report and as worries increased over the sovereign debt crisis
in some European countries, the latest being Hungary.

The Dow Jones industrial average (.DJI: ) fell 115.48
points, or 1.16 percent, to 9,816.49. The Standard & Poor’s
500 Index (.SPX: ) slid 14.41 points, or 1.35 percent, to
1,050.47. The Nasdaq Composite Index (.IXIC: ) tumbled 45.27
points, or 2.04 percent, to 2,173.90.

The stock market has been sensitive to recent news flow,
particularly out of Europe, and that has prompted some abrupt
intraday swings in the the S&P 500. The CBOE Volatility Index
(.VIX: ), also known as the VIX, remains at an elevated level,
though it has eased back since May.

The VIX shot up 3.1 percent to close at 36.57, while the
S&P 500 fell to its lowest closing level since early November.

“I don’t think we can underestimate the disappointment
from that payroll report on Friday,” said Scott Marcouiller,
senior equity market strategist at Wells Fargo Advisors in St.

“It was a kick in the stomach. It took the wind out of


Large manufacturers’ shares ranked as the biggest drags on
the Dow, with United Technologies Corp (UTX.N: ) down 2.9
percent at $63.22, and Caterpillar Inc (CAT.N: ) fell 3.3
percent to $55.83.

Apple finished down at $251.03 after the company unveiled
the newest iPhone model. Analysts said the expected
announcement was already priced into the stock.

Google Inc (Read more about Google Stock Analysis) (GOOG.O: ) lost 2.7 percent to $485.52 after
Connecticut’s attorney general sent a letter to the dominant
U.S. search engine company asking if it had collected data
from personal and business wireless networks without the
owners’ permission. [ID:nN07190499]

Bank of America Corp (BAC.N: ) fell 3.4 percent to $14.83
after the company’s Countrywide Financial Corp unit agreed to
pay $108 million to settle U.S. government charges of
misleading and overcharging consumers. [ID:nN07197201]


Shares of Goldman Sachs Group Inc (GS.N: ) tumbled 2.6
percent to $138.68 following news that a government commission
investigating the 2008 financial crisis has issued a subpoena
to the company after the bank flooded the panel with billions
of pages of digitized records. [ID:nN07197430]

Decliners outnumbered advancers on the New York Stock
Exchange by a ratio of 11 to 4, while on the Nasdaq, about
five stocks fell for every one that rose.

About 9.70 billion shares traded on the New York Stock
Exchange, the American Stock Exchange and Nasdaq — just above
last year’s estimated daily average of 9.65 billion.

Stock Analysis

(Reporting by Leah Schnurr; Editing by Jan Paschal)

US STOCKS-Wall St tumbles, S&P’s lowest close in 7 months