The Dow Jones Industrial Average (DJINDICES:^DJI) was down more than 113 points in late morning trading on Monday, as tech stocks Groupon (NASDAQ:GRPN) and Yahoo! (NASDAQ: YHOO) posted even more notable declines. Tech peer Intel (NASDAQ:INTC), however, was the Dow Jones' best-performing stock.
No major releases
There were no major economic releases on Monday, U.S. or globally, that would help explain the Dow Jones' decline.
German industrial production, a measure of the nation's economy, did rise 0.4% on a month-over-month basis, a bit better than the 0.3% economists had expected. Yet that didn't stop Germany's DAX from falling nearly 2%. That global weakness appeared to carry over to U.S. stocks.
Yahoo! falls after content plans come into focus
Yahoo! plans to go into original programming, The Wall Street Journal reported. The company would hire experienced writers and directors for a TV-class show. Yahoo! is reportedly planning on making a more aggressive push into Web-based video content, and a few quality, original shows could help it make its mark on the space.
Yahoo! shares, however, fell 2.3%, possibly due to weakness seen in Asian shares overnight. Tech and other stocks posted notable declines on Monday, which may have had investors lowering their estimates for Alibaba's value. The Chinese e-commerce company could begin trading on U.S. exchanges later this year; Yahoo!, with its large ownership stake, stands to profit from the IPO.
Shares of daily deals site Groupon were also down well more than 5% despite a lack of news on earnings or any other fronts. Its shares may have simply continued to fall in the wake of last week's brutal sell-off of momentum names including Groupon.
Intel rises on analyst upgrade
Intel rose 2% after Pacific Crest upgraded the stock to outperform from sector perform.
Among other things, Pacific Crest is positive on Intel's upcoming Grantley server platform, which it believes will help facilitate increased information technology spending.