June 16, 2009 (FinancialWire) (By Philip Holmes) — Stocks closed down in Monday following the release of bleak news on manufacturing, housing and capital outflows from the U.S. Investors sent shares broadly lower across the major indices. Plus, big banks like Citi (NYSE: C) and Bank of America (NYSE: BAC) are still reducing lending to consumers and businesses. Where is the recovery?

The Dow Jones industrial average ended the trading session at 8,612.13, down 187.13 points, while the Standard & Poor’s 500-stock index dropped 22.49 points, to 923.72. The Nasdaq composite index plunged 42.42 points to close at 1,816.38.

As of the trading close on Monday, The Dow Jones industrial average was back into negative territory, year to date. What caused the mayhem?

According to BusinessWeek, drops in metal and oil futures put a drag on commodities producers overall. Investors sought safe harbor: Yields on 10-year Treasury notes dropped to 3.73%, after rising sharply last week.

Investors also received bleak news on manufacturing. The U.S. Empire State index was lower, at -9.4 in June than the -8.7 reading from last year. The U.S. NAHB homebuilder survey index dropped in June, to 15. It stood at a miserable eight at the start of the year and had eked up to 16 in May.

According to the U.S. Treasury, foreigners sold $53.2 billion of U.S. assets in April, after buying $25 billion in March.

David Ellis at CNNMoney.com, citing a Treasury report, says that big banks were still not lending in April, despite getting generous help from taxpayers. According to Ellis, “The dollar amount of new loans issued by the 21 biggest recipients of taxpayer funds under the government’s Troubled Assets Relief Program, or TARP, fell 7% to $273 billion from nearly $295 billion during the month of March.”

He reports that some of that is due to lower demand for new commercial and industrial loans, according to regulators. But “a wide variety” of consumer, including first mortgages and credit cards, also showed declines. Loan originations were down at fifteen of the 21 banks that took part in the survey.

The Investrend Economics Calendar lists Housing Starts & Building Permits for May (8:30 a.m.), Producer Price Index for May (8:30 a.m.), Weekly Chain Store Sales (8:55 a.m.), Industrial Production & Capacity Util. for May (9:15 a.m.).

The Investrend Events Calendar showcases BBI, BJRI at Sterne, Agee & Leach West Coast Consumer Conference; BUCY, ROK, BRC, RRR at WJB Capital Group Milwaukee Industrial Bus Tour; FORR Analyst Meeting; JAH, COT, ABD, TSN at Barclays Capital Leveraged Finance Consumer Conference; NVDA Analyst Day; RXII, BHRT, DPDM, ZAGG at RedChip Small-Cap Investor and Health Information Technology Conference.

The Investrend Money Index is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ 50 Most Actives indicate the direction in which the mass of money is flowing. Last session’s trading showed 13 advancers versus 36 decliners and one unchanged. Advancers were led by Jazz Pharmaceuticals, Inc. (NASDAQ: JAZZ) up 72.73%, American Capital, Ltd. (NASDAQ: ACAS) up 14.13%, Cell Therapeutics, Inc. (NASDAQ: CTIC) up 12.59%, Huntington Bancshares Incorpora (NASDAQ: HBAN) up 8.92%, Ultrashort Real Esta (NYSE: SRS) up 8.82%, Financial Bear 3x (NYSE: FAZ) up 7.59%, Us Nat Gas Fd Etf (NYSE: UNG) up 7.09%. Decliners followed Las Vegas Sands Corp (NYSE: LVS) down 11.54%, E*Trade Financial Corporation (NASDAQ: ETFC) down 8.12%, Financial Bull 3x (NYSE: FAS) down 7.70%, Alcoa Inc (NYSE: AA) down 6.51%, Ultra Real Estate Pr (NYSE: URE) down 6.38%.

Vote in the Investrend Poll Question of the Day at Investrend Information (http://www.investrendinformation.com).

Investrend Website of the Day: http://www.joost.com

Quote of the Day: “True love comes quietly, without banners or flashing lights. If you hear bells, get your ears checked.” Erich Segal

Today is: Fudge Day.

Happy Birthday: Edward Davy, Geronimo, Stan Laurel, Babe Didrikson Zaharias, Erich Segal, Joyce Carol Oates, Phil Mickelson.

Today in History: Mary Queen of Scots recognized Philip II of Spain in 1586 as her heir. Spain declared war on the Kingdom of Great Britain in 1779, and the siege of Gibraltar begins. Abraham Lincoln’s House Divided speech was given in 1858 in Springfield, Illinois. The first roller coaster in the United States began operation in 1884 at Coney Island, New York. Ford Motor Company incorporated in 1903. Alfred Hitchcock’s Psycho opens in New York in 1960. Burglars were caught in 1972 breaking into the United States Democratic Party headquarters in the Watergate building.

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