Stocks slide after weak Chinese data

STEVE ROTHWELL AP Markets Writer Published:

NEW YORK (AP) -- Stocks are trading lower on Monday after a report showed that Chinese manufacturing contracted for the fourth straight month in April.

KEEPING SCORE: The Standard & Poor's 500 index fell eight points, or 0.4 percent, to 1,872.95. The Dow Jones industrial fell 85 points, or 0.5 percent, to 16,427. The Nasdaq composite dropped 18 points, or 0.5 percent, to 4,105.

CHINA SLOWDOWN: China's manufacturing contracted in April, but the pace of decline was less severe, suggesting the downturn in the world's No. 2 economy is bottoming out. HSBC's purchasing managers' index released Monday ticked up to 48.1 from 48.0 in March on a 100-point scale. Numbers above 50 indicate expansion.

BOND HIT: JPMorgan slumped $1.5, or 2.7 percent, to $54.09 after the bank said late Friday in a quarterly filing that it expects revenue from its bond and stock market unit to be down about 20 percent in the second quarter in a "continued challenging environment." The bank's first-quarter earnings were crimped by lower revenues at its bond trading business.

WEAK DRUGS: Pfizer fell 70 cents, or 2.3 percent, to $30.05 after the drug company said Monday that its first-quarter profit dropped 15 percent despite sharp cost-cutting. The earnings decline reflected competition from cheaper generic drugs. Pfizer has been trying since January to get British rival AstraZeneca to discuss its bid to buy the company, but AstraZeneca continues to rebuff Pfizer.

SERVICE GROWTH: An index measuring expansion in the U.S. service sector rose more than forecast in April. The Institute for Supply Management's index of non-manufacturing activity rose to 55.2 last month from 53.1 in March.

TREASURIES AND BONDS: The yield on the 10-year Treasury note edged up to 2.60 percent from 2.59 percent on Friday. The yield is close to its lowest of the year and has fallen from 3 percent at the start of January. The price of oil fell 27 cents, or 0.3 percent, to $99.49 a barrel.