Stocks began the week under pressure from the energy sector. Puerto Rico defaults on a bond payment. Bobbi Rebell reports.
A further tumble in oil prices pressured energy stocks, driving the major indices lower. Chevron and Exxon pulled down the Dow. Energy was the biggest loser on the S&P 500. S&P Dow Jones Indices' David Blitzer: SOUNDBITE: DAVID BLITZER, MANAGING DIRECTOR, S&P DOW JONES INDICES (ENGLISH) SAYING: "There's really nothing here that's likely to push oil back to 110 bucks a barrel in a big hurry." But that oil slide boosted shares of Southwest, American and other airlines. And more trouble for Puerto Rico- paying only a small part of a $58 million payment on Monday on its Public Finance Corp bonds that were due on August 1st. Moody's saying Puerto Rico is in default. Weak economic data contributed to the drop in overall stocks. Consumer spending rose in June at its slowest pace in four months, factory activity fell, and construction spending barely rose. Strong sales of trucks and sport utilities drove U.S. auto sales higher than expected in July. Shares of Ford, Fiat Chrysler and GM rose. The biggest loser on the S&P: Tyson Foods. The U.S.' largest meat processors cut its full-year forecast, citing weakness in its beef business. Michael Kors' stock slid after J.P. Morgan chopped its price target, noting that lower margin goods, like footwear and apparel, are making up more of its business. In Europe, strong earnings lifted shares. Investors shrugged off a steep slide in Greek stocks.