Stocks on Monday began the new week and new month lower, as the well-known litany of problems in the economy and financial markets continued to weigh things down.
The Dow Jones industrial average closed down 57.15 points, at 13,314.57. General Electric, American International Group and General Motors were the biggest contributors to the Dow’s retreat.
General Electric lost ground after an analyst at Citigroup said the pace of the company’s profit growth will slow and lowered his price target to $45 from $48. The analyst retained his “buy” recommendation on the stock.
McDonald’s, DuPont and IBM were among Dow winners.
Technology and small-company stocks posted bigger percentage declines. Research in Motion, maker of the BlackBerry hand-held communications device, Microsoft and Apple were among tech losers.
E-Trade Financial sank 49 cents, or 10.6 percent, to $4.11, despite news last week of an investment in the company by a Chicago-based hedge fund. Banc of America Securities issued a “sell” recommendation on the stock.
Among local stocks, retailer Sears Holdings, based in Hoffman Estates, added $4.95, to $110.46. An analyst at Credit Suisse said he still rates the stock “outperform,” despite the company’s surprisingly weak quarterly report.
Auto parts-maker Tenneco, based in Lake Forest, was downgraded to “equal weight” from “overweight” by Lehman Brothers. Shares fell $2.09, or 7 percent, to $27.50.
Treasury securities continued their recent rally, as investors sought safety. Traders awaited Friday’s report on monthly job growth, which is expected to be weak.
Crude oil rose in futures trading, as a recent slump attracted buyers. Oil for January delivery rose 60 cents a barrel, to $89.31.
TREASURY AUCTIONS: Interest rates declined at the weekly auctions of 3- and 6-month Treasury bills. The discount rate for 3-month bills was 3.03 percent, down from 3.17 percent at last week’s auction. The rate on 6-month bills was 3.19 percent, down from 3.34 percent last week.
The coupon-equivalent investment rates at Monday’s auctions were 3.10 percent for 3-month bills and 3.30 percent for 6-month bills.
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