Stocks sink, pulling S&P 500 down from 5-year high
ASSOCIATED PRESS January 7, 2013 7:30AM
Traders work on the floor at the New York Stock Exchange in New York, Monday, Dec. 31, 2012. World stocks cooled off Monday Jan. 7, 2013 as some investors sold shares to lock in profits following recent rallies. (AP Photo/Seth Wenig)
Updated: January 7, 2013 4:16PM
Stocks closed lower on Wall Street, pulling the Standard & Poor’s 500 index down from the five-year high it reached Friday.
The S&P 500 dropped four points end at 1,461 Monday. Stocks surged last week after lawmakers reached a last-minute budget deal.
The Dow Jones industrial average lost 50 points to close at 13,384, while the Nasdaq composite fell two points to 3,098.
Investors are shifting their focus to corporate profits. Aluminum producer Alcoa launches the reporting season for the fourth quarter of 2012 after the market closes on Tuesday.
Superstorm Sandy, the presidential election, and worries about the narrowly avoided “fiscal cliff” could make for some surprises.
Falling stocks outnumbered rising ones on the New York Stock Exchange. Volume was about average at 3.3 billion shares.