MARKET SNAPSHOT: U.S. Stocks Fall; Nasdaq Skids 1.2%

By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks bounced off session lows but still finished Monday lower as selloff in biotechnology companies weighed on indexes on a day light on economic news. Losses followed a drop in prices on Friday, which dented last week's gains.

The Nasdaq Composite (RIXF) finished the day 50.40 points, or 1.2%, lower at 4,226.39, paring some of the heavy losses at session lows. Biotech and internet stocks were the biggest losers on the tech-heavy index.

The S&P 500 index (SPX) ended the day 9.08 points, or 0.5%, lower at 1,857.44. The benchmark index bounced after nearing a key support level of 1,850.

The Dow Jones Industrial Average (DJI) shed 26.08 points, or 0.2%, to 16,276.69.

Read the recap of our live stock market coverage.

Jim Russell, senior equity strategist at U.S. Bank Wealth Management, was not too concerned by the weakness in the markets Monday.

"We believe markets are waiting for economic data this week -- for validation that weather was indeed the main culprit in the weakness in the economy this winter. If it turns out that it was not the weather, then there will be a downside risk," Russell said.

Speaking about the recent selloff in biotechnology stocks Russell said that it was healthy for the sector to pull back a little, as "some of the biotechnology companies became very expensive."

The sole economic report Monday was Markit's preliminary or flash PMI index, which tallied 55.5 in March, just slightly below February's nearly four-year high. Any number over 50 signals growth.

Most manufacturers said they were churning out plenty of goods and demand remained strong. They also continued to add workers in anticipation of stronger growth in the broader U.S. economy in the months ahead, Markit said.

The data however, did not inspire the markets to move higher.

San Francisco Federal Reserve President John Williams in an interview with Washington Post said there was no suggestion from the Federal Reserve last week that the central bank will pull the trigger to hike interest rates sooner than previously believed.

"Market perceptions are what they are. But I really don't see anything of what we said as suggesting that we're going to tighten monetary policy sooner rather than previously," Williams said.

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 6.7% after the nutritional-products firm said it nominated three additional Carl Icahn designees to its board.

Apple Inc. (AAPL) rose 1.2% after news over the weekend that the tech giant is in talks with Comcast Corp. (CMCSA) about teaming up for a streaming-television service.

Netflix Inc. (NFLX) shares declined 6.7% after falling below their 50-day moving average on Friday.

Nu Skin Enterprises (NUS) surged 18% after Chinese authorities said they would fine the direct-marketing company $540,000 over its sales and marketing tactics. The stock jumped in relief that no further action was taken. The company had said last week that it expects to be fined and potentially face other sanctions in China.

After selling off on Friday, biotech stocks continued to slide. The iShares Nasdaq Biotechnology ETF fell 2.8% while Nasdaq Biotechnology index dropped 3%.

Alexion Pharmaceuticals Inc. (ALXN) shares skidded 6.3%, Biogen Idec Inc. (BIIB) shed 1.9% and Mylan Inc. (MYL) fell 4.2%.

Facebook Inc. (FB) dropped 4.7%, among the biggest S&P 500 losers. The stock is up 17% year-to-date.

First Solar Inc. (FSLR) reversed earlier losses and closed up 0.7%. The stock rallied 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, gold prices fell sharply, while oil inched higher. European stocks slid after posting solid weekly advances last week.

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