* Purchasing Managers Index expands to 51.3 vs est. 50.3
* Utilities top loser among S&P 500 sectors
* Indexes down: Dow 0.32 pct, S&P 0.39 pct, Nasdaq 0.32 pct
(Updates to afternoon)
By Noel Randewich
Oct 3 The fourth quarter got off to a weak start
for U.S. stock investors on Monday, with banks and utilities
pulling the S&P 500 lower.
Major indexes have bounced between gains and losses in the
past few days, with investors nervous about the outcome of a
tight race for the White House ahead of the Nov. 8 election.
Major banks extended recent declines as investors worried
about the stability of Deutsche Bank and also Wells
Fargo & Co's handling of sales abuses.
U.S-listed shares of Deutsche lost 2.3 percent as hopes
faded of a swift deal with U.S. authorities over a multi-billion
dollar penalty for mis-selling mortgage-backed securities.
"The feeling is there will be a negotiation lowering that
penalty but it's certainly a bit of an overhang on the overall
market," said Tim Ghriskey, chief investment officer of Solaris
Group in Bedford Hills, New York.
The S&P 500 financial index declined 0.53 percent as
Wells Fargo slid 1.15 percent to its lowest since
Also weighing on investor sentiment was a plan announced by
Britain on Sunday to start its separation from the European
Union by March.
With yields on U.S. Treasury bonds up following
stronger-than-expected manufacturing data for September, the
interest-rate sensitive utility sector fell 1.35
The consumer staples index declined 0.63 percent, with
Procter & Gamble falling 1.3 percent.
At 2:32 pm ET, the Dow Jones industrial average was
down 0.32 percent to 18,249.36 points and the S&P 500 had
lost 0.39 percent to 2,159.74.
The Nasdaq Composite dropped 0.32 percent to
Tesla Motors jumped 4.9 percent after the electric
carmaker said third-quarter deliveries rose by 70 percent to
Cabela's surged 14.9 percent after the retailer said
it would be acquired by Bass Pro Shops in a deal valued at about
Declining issues outnumbered advancing ones on the NYSE by a
1.44-to-1 ratio; on Nasdaq, a 1.49-to-1 ratio favored decliners.
The S&P 500 posted 10 new 52-week highs and 5 new lows; the
Nasdaq Composite recorded 64 new highs and 25 new lows.
(Additional reporting by Yashaswini Swamynathan in Bengaluru;
Editing by Frances Kerry)