MARKET SNAPSHOT: U.S. Stocks Drift Lower After Weak PMI

By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks continued the previous session's downward drift on Monday after Markit's initial purchasing managers index for March fell slightly.

The S&P 500 index (SPX) was 5 points, or 0.1%, lower at 1,863.86, with health-care stocks leading the losses. The Dow Jones Industrial Average (DJI) was nearly flat at 16,301.94.

The Nasdaq Composite (RIXF) dropped 25 points, or 0.6%, with biotechnology stocks hit hardest.

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The initial or "flash" Markit PMI for the U.S. fell to 55.5 in March from 57.1 in February, but still showed improving conditions for manufacturers. Readings over 50 in the purchasing managers index indicate growth.

There is no other economic news scheduled for Monday. More Fed officials are scheduled to speak later in the week, with St. Louis Fed President James Bullard set to give two speeches in Hong Kong on Wednesday, while Cleveland Fed President Sandra Pianalto will speak at an investment conference in Dayton on Thursday. Bullard is not a voting member of the Fed policy-making committee this year, while Pianalto is.

In corporate news, Herbalife Ltd. (HLF) rallied 6.2% after the nutritional-products firm said it nominated three additional Carl Icahn designees to its board.

Apple Inc. (AAPL) rose 1%, after news over the weekend that the tech giant is in talks with Comcast Corp. (CMCSA) about teaming up for a streaming-television service.

St. Jude Medical Inc. (STJ), pared premarket gains and was 0.7% higher after the U.S. Food and Drug Administration granted approvals for three of the medical device maker's pacemakers including its Allure Quadra.

After selling off on Friday, biotech stocks are continuing to slide. The iShares Nasdaq Biotechnology ETF and Nasdaq Biotechnology index fell sharply. Gilead Sciences Inc (GILD) was down 2.5%, Biogen Idec Inc (BIIB) fell 1.9%.

First Solar Inc. (FSLR) slipped 1% after rallying 36% last week, when it was the best performer in the S&P 500. The solar company last week said it expects its sales to rise in 2014 to about $4 billion, from $3.3 billion last year.

In other financial markets, metals prices were mixed, while oil inched higher. European stocks slid after posting solid weekly advances last week.

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