US stocks dip on weak data from China, Japan

In this Feb. 21, 2014, file photo, trader Gregory Rowe, center, works at the post of specialist Joseph Mastrolia, left, on the floor of the New York Stock Exchange. US stocks slipped on Monday as weak economic data from China and Japan raised questions about the growth outlook in Asia. AP

NEW YORK—US stocks slipped on Monday as weak economic data from China and Japan raised questions about the growth outlook in Asia.

The Dow Jones Industrial Average fell 34.04 (0.21 percent) to 16,418.68.

The broad-based S&P 500 shed 0.87 (0.05 percent) to 1,877.17, while the tech-rich Nasdaq Composite Index gave up 1.77 (0.04 percent) to 4,334.45.

Earlier Asian and most European markets lost ground after China reported weak inflation data and a $23.0 billion trade deficit in February, while analysts had forecast an $11.9 billion surplus.

“Markets are retreating on the weak Chinese exports data, which is consistent with our view that the China economy is slowing,” said Jack Ablin, chief investment officer at BMO Private Bank.

Meanwhile, Japan said its economy grew more slowly in the fourth quarter, 0.2 percent, than the previously reported 0.3 percent.

Michael James, managing director of equity trading at Wedbush Securities, said profit-taking was also a factor following gains since early February.

“Stocks have had a pretty good move,” James said. “Traders were kind of positioned to take profits.”

Bank of America Merrill Lynch downgraded homebuilders Meritage Homes and KB Home, citing pressure on profit margins. KB Home fell 4.1 percent, while Meritage shed 3.5 percent.

Boeing experienced the deepest losses among the blue chips, dipping 1.3 percent after a Japan Airlines 787 Dreamliner jet made an emergency landing in Honolulu, reportedly due to a possible problem with its hydraulic system.

The news followed a Friday Boeing disclosure that hairline cracks were found in the wings of some of its Dreamliners in production, due to a manufacturing problem.

Chiquita Brands International jumped 10.7 percent after announcing a merger with Fyffes to create the world’s largest banana company. Chiquita shareholders will own about 50.7 percent of the new company.

Fuel cell stocks were hot ahead of company earnings reports this week. Fuel Cell Energy, which will release earnings Tuesday, rose 11.3 percent, while Plug Power, which reports Thursday, jumped 24.7 percent.

Bond prices were mixed. The yield on the 10-year US Treasury slipped to 2.78 percent from 2.79 percent, while the 30-year edged higher to 3.73 percent from 3.72 percent. Bond prices and yields move inversely.