Tuesday, June 16, 2009

Wall Street sees worst day in a month

NEW YORK (Reuters) – U.S. stocks tumbled, marking

their worst slide in a month on Monday after regional manufacturing data dented optimism about the economy's health and resource shares fell alongside commodity prices.

After a series of signs the economy may be stabilizing, investors are looking for more definitive signals of its improving health. Analysts also said a pullback was unsurprising after a three-month rally.

Economists had expected to see slight improvement in the New York Fed's Empire State index, but the survey showed the factory sector shrank at a much more severe rate in June than the previous month.

"The bottom line is investors were starting to factor in a V-shaped recovery to the economy," said Alan Lancz, president of Alan B. Lancz & Associates Inc, in Toledo, Ohio.

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