By Myra P. Saefong and Polya Lesova, MarketWatch
SAN FRANCISCO (MarketWatch) -- U.S. stocks fell Monday, with blue chips leading the losses after data showed that manufacturing activity in the U.S. dropped into contraction territory in June for the first time since July 2009.
The Dow Jones Industrial Average (DJI) fell 52 points, or 0.4%, to 12,827.04, with DuPont (DD) leading the decliners. Twenty three of the Dow's 30 components traded lower. The benchmark index was trading around 12,878 shortly before the data on manufacturing.
The S&P 500 index (SPX) shed 2 points, or 0.2%, to 1,359.84, with shares of WPX Energy Inc. (WPX) leading the index lower. Shares of the company fell 4.9%.
The Nasdaq Composite (RIXF) was up 3 points, or 0.1%, at 2,938.11.
The Institute for Supply Management reported Monday that manufacturing activity in the U.S. dropped in June into contraction territory for th e first time since July 2009.
The ISM fell to 49.7% from 53.5% in May. A MarketWatch-compiled poll of economists showed a forecast of 52.3%.
"The ISM number confirms a slowdown moving below the 50 point measure," said David Pankiw, partner at Cubic Financial Advisors. "The U.S. economy will follow the global economic slowdown."
Data on construction spending from the Commerce Department, however, was upbeat. Outlays for U.S. construction projects jumped 0.9% in May to a seasonally-adjusted annual rate of $830.0 billion. That was the biggest increase of the year and was well above analysts' expectations of a 0.2% rise.
U.S. stocks had rallied on Friday after European Union leaders agreed on fresh measures to tackle the euro-zone debt crisis. The Dow gained 3.9% in June, posting its best month since October 2011.
For the second quarter, however, the blue-chip index fell 2.5%, registering its first quarterly loss in three quarters.
Decliners nearly matched advancers on the New York Stock Exchange, where about 164 million shares traded. Composite volume was nearly 763 million.