US STOCKS-Cyclicals lead Wall St lower after weak German data
By Ryan Vlastelica
NEW YORK Oct 7 (Reuters) - U.S. stocks were lower on Tuesday, with cyclical sectors leading the day's decline following weak data out of Germany that adding to growing concerns over the pace of global economic growth.
The day's losses were broad, but the decline was concentrated in the sectors that are most closely tied to the pace of economic expansion.
The S&P industrial sector fell 0.9 percent while materials were off 0.8 percent and information technology slid 0.6 percent. Among specific stocks, Boeing Co lost 1.2 percent to $124.71 and Caterpillar Inc was down 1.4 percent to $96.66.
One of the day's strongest sectors was utilities, up 0.4 percent. The group is considered a defensive play.
German industrial output for August slid 4 percent, the biggest fall in 5-1/2 years, a day after a report showed industrial orders had their biggest monthly drop since 2009. The news came as the International Monetary Fund cut its global economic growth outlook for the third time this year.
"The number was very weak, which makes for a tough backdrop. I don't think this is a trend of something that will get horrible, but it is weak and current valuations demand that data be better than weak," said Hayes Miller, who oversees about $57 billion as the Boston-based head of asset allocation in North America at Baring Asset Management.
With the day's decline the S&P 500 fell back under its 100-day moving average, a sign of weakening near-term momentum.
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