NEW YORK -- The S&P 500 posted its best monthly gain since October 2011 on Friday, but U.S. stocks ended lower for the day as U.S. economic growth slowed more sharply than initially thought in the fourth quarter.
The S&P 500 gained 5.5 percent for the month, while the Nasdaq rose 7.1 percent, its best monthly performance since January 2012. The strong gains have pushed the Nasdaq within striking distance of the 5,000 mark and record highs set in March 2000.
%VIRTUAL-pullquote-We started off with the GDP report which was a bit underwhelming. That maybe set a tone for the market that it wasn't wildly ebullient.%A separate economic report showed a gauge of business activity in the U.S. Midwest dropped to its lowest reading since July 2009 in February.
"We started off with the GDP report which was a bit underwhelming. That maybe set a tone for the market that it wasn't wildly ebullient," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.
Apple, down 1.5 percent at $128.46, weighed on both the S&P 500 and Nasdaq. Investors may have been taking profits ahead of Apple's (AAPL) expected unveiling of its smartwatch March 9, said Kim Forrest, senior equity research analyst, Fort Pitt Capital Group in Pittsburgh.
The Dow Jones industrial average (^DJI) fell 81.72 points, or 0.45 percent, to 18,132.7, the Standard & Poor's 500 index (^GSPC) lost 6.24 points, or 0.3 percent, to 2,104.5 and the Nasdaq composite (^IXIC) dropped 24.36 points, or 0.49 percent, to 4,963.53.
After a sluggish start to the year, stocks rebounded sharply in February. The Dow rose 5.6 percent in the month, its best monthly performance since January 2013.
Movers and Shakers
Shares of Monster Beverage (MNST) jumped 13.1 percent to $141.12, the biggest percentage gainer in the S&P 500 and Nasdaq. Thomson Reuters (TRI) data shows S&P 500 earnings increased 6.8 percent in the fourth quarter, above expectations at the start of this quarter.
Bank of America (BAC) shares lost 1.4 percent to $15.81. The company said two members of its board of directors and its chief accounting officer will be leaving the company in coming weeks. UBS (UBS) also cut its rating on the stock to "neutral" from "buy."
Volume was again low. About 6.5 billion shares changed hands on U.S. exchanges, below the 6.8 billion average for the month, according to BATS Global Markets.
Advancing issues outnumbered declining ones on the NYSE by 1,567 to 1,485, for a 1.06-to-1 ratio; on the Nasdaq, 1,694 issues fell and 1,048 advanced, for a 1.62-to-1 ratio favoring decliners.
The S&P 500 posted 26 new 52-week highs and 2 new lows; the Nasdaq composite recorded 93 new highs and 27 new lows.
What to watch Monday:
The Commerce Department releases personal income and spending for January at 8:30 a.m. Eastern time.
At 10 a.m., the Institute for Supply Management releases its manufacturing index for February, and the Commerce Department releases construction spending for January.
These selected companies are schedule to release quarterly financial results:
6 Ways to Live Like You're Rich - but Not Spend a Lot
Market Wrap: Stocks Down on Data; Post Strong Monthly Gain
While everyone's heading to Cancun and the Caymans, you can enjoy an equally relaxing and beautiful vacation for less by choosing a destination that isn't quite so popular.
Off-the-beaten-path destinations like Roatan, Honduras (pictured), Tobago and Grenada offer sandy beaches and plenty of sun at a more affordable cost than traditional hotspots. If you're really in the mood for something different, find a city on the map you've always been curious about and head to Airbnb to snag discount accommodations there. Airbnb rentals aren't just rooms in people's houses; you can also rent a yurt, a modern loft, a houseboat, a beach house and more.
Enjoy the finer things in life for less than sticker price by learning to be a savvy shopper.
Sites like Groupon (GRPN), Amazon Local (AMZN) and Scoutmob can help you score great deals on upscale restaurants, travel packages, spa treatments and more. Daily deals sites like Rue La La and Gilt can help you snag luxury and designer goods (clothing, furniture and more) at a fraction of the cost.
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Gourmet coffee, fresh flowers for your kitchen table, luxury shampoo and shower gel -- sometimes the small things can make a big difference in how much we enjoy our day and how pampered we feel. Identify the little things that mean a lot to you and treat yourself with these tiny splurges on a regular basis, while simultaneously cutting costs on big-ticket items like housing and cars. You'd be surprised how much these small treats can boost your mood.
Move to a city with a lower cost of living -- or move from a fancy ZIP code to a more modest neighborhood -- and you can get a bigger, nicer-quality home for the same price.
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Stock your closet with high-quality, well-constructed staples that will last you year after year and won't fall out of style. Think: a white button-down shirt, a dark pair of dress pants, a flattering pair of dark wash jeans, a classic coat like a pea coat or trench coat. (Notice that these recommendations apply to both men and women.)
These foundational pieces can be used to create a wide variety of outfits, and you can keep your look current by updating it each year with a few select accessories like scarves. It's much less expensive than revamping your whole closet each season to stay on top of the trends.