The American stock market lost its momentum on Monday as enthusiasm from the rollout of the new quantitative easing program (QE 3) was overshadowed by bad news from Europe and a disappointing Empire State Manufacturing Survey.
Last week's optimism resulting from the European Central Bank's new bond-buying plan faded on Monday as a result of the impasse reached at the September 14 meeting of European Union finance ministers FEZ -0.52% . Reports indicated that German representatives resisted plans advanced by Spain,France and Italy to provide more accommodative terms for sovereign debt bailout requests.
The Empire State Manufacturing Survey for September was released on Monday morning by the Federal Reserve Bank of New York. The survey indicated its second consecutive decline as the general business conditions index slipped another five points to negative 10.4. Economists had been expecting the index to increase to negative 2.0 from August's negative 5.8. A result below zero indicates contraction.