LONDON (ShareCast) - - Chinese GDP forecast dampens global outlook.
- ISM services index beats expectations.
- AIG to sell 6bn-dollar stake in AIA.

Dow Jones: (-0.11%) 12,963
Nasdaq: (0.86%) 2,950
S&P 500: (0.39%) 1,364

US stocks finished in the red on Monday after China lowered its economic growth outlook for 2012 and some economic data from the UK and Eurozone came in worse than expected. The fall on the S&P 500 marked the largest two-day decline since January.

Chinese Premier Wen Jiabao revealed that the country had reduced its gross domestic product (GDP) target for 2012 to 7.5%, the first time below the 8% level in the last eight years. The economy expanded by 9.2% in 2011.

Elsewhere, the UK Markit/CIPS services purchasing managers' index (PMI) fell from 56 to 53.8 in February, under consensus estimates of 54.8. Meanwhile, the Eurozone service sector PMI fell to 48.8, compared with the previous month’s reading of 50.4 and the consensus estimate of 50.4.

Meanwhile, concerns about the level of participation in the Greek debt-swap were also weighing on sentiment. While the Steering Committee of the Private Creditor-Investor Committee for Greece (PCIC) – which includes some of the biggest banks in Europe – have said that they will participate in the debt exchange, one German investor group has recommended that those holding Greek bonds with short maturities should reject it.

In other news, Richard Fisher, the President of the Federal Reserve Bank of Dallas and a well-known hawk, has today said that, “if the data continue to improve, however gradually, the markets should begin preparing themselves for the good Dr. Fed to wean them from their dependency rather than administer further dosage.”

ECONOMIC DATA

The ISM services index rose to 57.3 points in February, from 56.8 the month before (Consensus: 56.0). The employment index fell from 57.4% to 55.7%.

Factory orders grew by 1.0% month-on-month in January (Consensus: 0.0%). The previous month’s reading was revised up to show a change of 1.4% month-on-month, from the preliminary estimate of 1.0% month-on-month.

EQUITIES

Alpha Natural Resources, AK Steel and Alcoa experienced steep losses after China's decision to lower its growth forecast fuelled concerns over how slower economic activity will affect demand for commodities.

Insurance group American International Group (AIG) was in demand after saying that it will sell around $6bn in shares of American International Assurance (AIA) in order to pay back the US government following its bailout in 2008.

Computer giant IBM rose slightly to an all-time high of $200 per share, after Citigroup announced that it is looking into using its Watson technology.

Education software firm Archipelago Learning surged after Thomas Bravo said that it would be it for around $291m.

SECTORS

From a sector point of view, the biggest gains were recorded in mortgage finance (+1.7%) and furniture (+1.1%).

The biggest losses were registered in coal (-4%) and precious metals (-3.8%).

BC

S&P 500 - Risers
Gannett Co. Inc. (GCI) $15.05 +3.44%
Big Lots Inc. (BIG) $44.15 +3.37%
Leggett & Platt Inc. (LEG) $22.68 +3.23%
Cincinnati Financial Corp. (CINF) $35.28 +2.26%
Accenture Plc (ACN) $60.91 +2.20%
Noble Energy Inc. (NBL) $96.55 +2.19%
ProLogis (PLD) $34.47 +2.16%
Apartment Investment & Management Co. (AIV) $25.12 +2.16%
Darden Restaurants Inc. (DRI) $50.80 +2.09%
American International Group Inc. (AIG) $30.41 +2.05%

S&P 500 - Fallers
First Solar Inc. (FSLR) $28.08 -6.46%
Alpha Natural Res (ANR) $16.33 -6.15%
AK Steel Holding Corp. (AKS) $7.29 -6.06%
Metropcs Communications Inc. (PCS) $9.96 -5.68%
CF Industries Holdings Inc. (CF) $177.98 -5.46%
Supervalu Inc. (SVU) $6.08 -5.44%
Advanced Micro Devices Inc. (AMD) $7.06 -5.36%
Micron Technology Inc. (MU) $8.20 -5.15%
Teradyne Inc. (TER) $15.32 -4.90%
United States Steel Corp. (X) $26.22 -4.69%

Dow Jones I.A - Risers
Merck & Co. Inc. (MRK) $38.46 +1.40%
International Business Machines Corp. (IBM) $200.68 +0.94%
Verizon Communications Inc. (VZ) $39.00 +0.85%
Travelers Company Inc. (TRV) $58.50 +0.84%
Walt Disney Co. (DIS) $42.70 +0.80%
Exxon Mobil Corp. (XOM) $87.01 +0.79%
Wal-Mart Stores Inc. (WMT) $59.40 +0.66%
McDonald's Corp. (MCD) $99.94 +0.44%
Procter & Gamble Co. (PG) $66.95 +0.42%
AT&T Inc. (T) $30.99 +0.39%

Dow Jones I.A - Fallers
Alcoa Inc. (AA) $9.87 -3.61%
Caterpillar Inc. (CAT) $110.09 -2.13%
Bank of America Corp. (BAC) $7.97 -1.97%
United Technologies Corp. (UTX) $83.29 -1.48%
Intel Corp. (INTC) $26.54 -1.39%
Hewlett-Packard Co. (HPQ) $25.01 -1.22%
E.I. du Pont de Nemours and Co. (DD) $50.89 -1.09%
Boeing Co. (BA) $74.13 -1.03%
Microsoft Corp. (MSFT) $31.80 -0.86%
Cisco Systems Inc. (CSCO) $19.60 -0.81%

Nasdaq 100 - Risers
Ross Stores Inc. (ROST) $54.93 +1.91%
O'Reilly Automotive Inc. (ORLY) $89.85 +1.72%
Costco Wholesale Corp. (COST) $87.63 +1.62%
Bed Bath & Beyond Inc. (BBBY) $61.73 +1.46%
Urban Outfitters Inc. (URBN) $28.52 +1.46%
Seagate Technology Plc (STX) $27.66 +1.39%
Apollo Group Inc. (APOL) $42.43 +1.36%
Garmin Ltd. (GRMN) $47.19 +1.11%
Mattel Inc. (MAT) $33.03 +1.07%
Oracle Corp. (ORCL) $30.24 +0.93%

Nasdaq 100 - Fallers
First Solar Inc. (FSLR) $28.08 -6.46%
Flextronics International Ltd. (FLEX) $6.98 -4.05%
Broadcom Corp. (BRCM) $34.78 -3.87%
Lam Research Corp. (LRCX) $39.50 -3.75%
Foster Wheeler AG (FWLT) $24.10 -3.60%
Wynn Resorts Ltd. (WYNN) $122.75 -3.55%
Logitech International S.A. (LOGI) $8.12 -3.45%
Research in Motion Ltd. (RIMM) $13.32 -3.41%
Baidu Inc. (BIDU) $136.66 -3.37%
Nvidia Corp. (NVDA) $14.87 -3.32%

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