U.S. stocks fell, capping a second monthly drop for the Standard & Poor’s 500 Index, after economic growth trailed forecasts, jobless claims rose to a five-year high and Exxon Mobil Corp.’s profit missed analysts’ estimates.
“The data put the market on notice that the economy is slowing,” said Quincy Krosby, who helps manage $380 billion as chief investment strategist at the Hartford in Hartford, Connecticut. “It’s not equity friendly.”
Caterpillar Inc., Boeing Co. and Walt Disney Co. led the retreat after the Commerce Department said the economy grew at a 1.9 percent rate last quarter and contracted at the end of 2007. Exxon Mobil fell, extending the worst monthly slump for S&P 500 energy companies since at least 1989, after declining production slowed earnings growth. Benchmark indexes extended their tumble late in the day as former Federal Reserve Chairman Alan Greenspan said the housing slump will worsen. Read more…
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