Investing.com - U.S. stocks closed lower Monday, following the release of disappointing U.S. data and as the euphoria surrounding the announcement of fresh easing measures by the Federal Reserve began to fade.
At the close of U.S. trade, the Dow Jones Industrial Average fell 0.30%, the S&P 500 index retreated 0.31%, while the Nasdaq Composite index slipped 0.17%.
In a report, the Federal Reserve Bank of New York said that its index of manufacturing activity fell unexpectedly to minus 10.4 in September, from a reading of 5.8 the previous month.
Analysts had expected the index to decline to improve to minus 2 in September.
The data came after the Fed announced last week that it would buy USD40 billion of mortgage-backed securities every month and would keep buying them until the job market improves.
The bank also said it expects to keep short-term interest rates at record low levels through at least mid-2015, six months longer than previously anticipated.
General Motors saw shares tumble 0.99% after the U.S. Treasury Department said that it is not willing to sell the government's stake in the automaker, seeing as a sale now would mean huge investment losses, according to a Wall Street Journal report.
Financial stocks were also broadly lower, as shares in Bank of America dropped 0.84% and JP Morgan declined 0.43%, while Goldman Sachs and Citigroup slumped 0.42% and 0.30% respectively.
Separately, JPMorgan's compliance with U.S. anti-money laundering laws was reportedly being reviewed by a banking regulator, making the largest U.S. bank the latest target of a wide investigation on how banks prevent transactions involving drug money and sanctioned countries.
On the upside, Apple shares climbed 0.93% after AT&T said sales of the company's iPhone 5 set a record over the weekend, making the new device the fastest-selling iPhone Apple has ever offered. In addition, BMO raised its price target to USD750 from USD680 on the iPhone maker.
Elsewhere, IRIS International soared 44.93% after Danaher said it will acquire the diagnostics company in a deal worth USD355 million.
Also in company news, Tyco International shareholders approved a breakup of the industrial conglomerate into three parts, sending shares up 0.38%.
At the close of European trade, the EURO STOXX 50 dropped 0.42%, France’s CAC 40 slumped 0.78%, while Germany’s DAX 30 fell 0.11%.
Investors are anticipating the TIC long term purchases from the U.S., the German ZEW economic sentiment report, and the BOE inflation letter on Tuesday.