Stocks declined, with the Standard & Poor’s 500 Index sliding to a five-week low, as speculation the economy may slip into another recession offset investor optimism amid more than $1 trillion in takeovers this year. Two-year Treasury notes climbed, while oil fell for a fourth day.
The S&P 500 lost 0.4 percent to 1,067.37 at 4 p.m. in New York, the lowest level since July 16. Two-year note yields slid 1 basis point to 0.49 percent, within 3 basis points of a record low 0.4547 percent reached on Aug. 20. Oil dropped 71 cents, or 1 percent, to $73.11 a barrel.
The S&P 500 has tumbled 12 percent from its high for the year in April as concern the recovery is in jeopardy overshadowed better-than-estimated profit growth. Reports this week will probably show U.S. home sales fell and the economy grew from April through June even less than previously estimated, according to Bloomberg surveys of economists.
Full story: U.S. Stocks Retreat as Economic Concerns Overshadow Takeovers – Bloomberg