Stocks edge lower after four-straight weeks of gains

Associated Press

NEW YORK

Stocks took a pause Monday from their big September rally as worries about the financial sector offset excitement over a fresh round of corporate dealmaking.

The Dow Jones industrial average lost 48 points in a late-day slide, but it’s still up 8 percent for the month, putting it on track for its best September since 1939.

Chip Brian, CEO of SmarTrend, an electronic trend trading system, said Monday’s modest decline was largely tied to investors’ pocketing profits racked up during the market’s four-week rally.

Before Monday, the Dow Jones industrial average had risen in each of the past four weeks, its longest winning streak since eight consecutive weekly gains ended in late April when stocks hit their highest levels of the year.

“The September rally has been surprisingly resilient,” Bryan said. But investors might be ready to put the brakes on the run-up so they can wait to see what happens during earnings season, which kicks off next week, Bryan said.

Financial stocks mostly dipped as concern remains about the health of Europe’s banking sector. Moody’s Investors Service cut its rating on Anglo Irish Bank Corp., one of Europe’s more-troubled banks in recent months. Global banking giants such as Barclays PLC and JPMorgan Chase & Co. each fell more than 1 percent.

With no major economic reports to drive trading, investors focused on individual stocks after major deals in the airline, consumer products and retailing industries.