Stocks Closed Lower on Strong Data

U.S. stocks closed lower on Monday, finishing October with a loss, as stronger-than-expected consumer spending data underlined the view that the economy is growing at a steady pace. The Dow Jones Industrial Average declined 18.77 points, or 0.10%, to 18,142.42. The S&P 500 slipped 0.26 points, or 0.01%, to 2,126.15. The Nasdaq Composite was down 0.97 points, or 0.02%, to 5,189.13. For the month, the Dow fell 0.9%, the S&P 500 declined 1.9% and the Nasdaq shed 2.3%.

Americans increased spending in September by the largest amount in three months. Consumer spending rose 0.5% last month, the Commerce Department said Monday.

Brocade Communications Systems Inc. BRCD, +2.83% one of Silicon Valley’s remaining dot-com-era networking giants, is in advanced talks to sell itself, according to a Monday report. The company’s stock roared more than 20% higher Monday after Bloomberg News reported that Brocade “is nearing the final stages of a sale process,” based on anonymous sources.

Oil futures tumbled Monday after a weekend meeting of major oil producers left doubts over their ability to complete proposed output cuts. West Texas Intermediate crude for December delivery fell $1.84, or 3.8%, to end at $46.86 a barrel. December Brent crude futures fell $1.41, or 2.8%, to end at $48.30 a barrel.

U.S. prosecutors are focusing on Valeant Pharmaceuticals International Inc.’s former CEO and CFO as they build a fraud case against the company that could yield charges within weeks, according to people familiar with the matter.

Lumber Liquidators reported a bigger-than-expected quarterly loss, hurt by higher marketing expenses to woo back customers, and said it could not provide a timeline for potential settlements with regulators, or an outlook for its business. Total sales rose 3.4 percent to $244.1 million, while same-store sales grew 1 percent in the third quarter ended Sept. 30.

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