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Goldman Sachs ( GS ) rises after Q1 profit beat

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Salesforce ( CRM ) falls on report of likely Informatica ( INFA ) deal

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Indexes off: Dow 0.61%, S&P 1.08%, Nasdaq down 1.61%

(Updated at 2:15 p.m. ET/1815 GMT)

By Chuck Mikolajczak

NEW YORK, April 15 (Reuters) - U.S. stocks fell on

Monday, as an early lift from a strong retail sales report gave

way to a jump in Treasury yields and concerns about rising

tensions in the Middle East.

With the S&P 500 coming off its biggest one-day percentage

drop since Jan. 31 in the prior session, stocks opened higher in

part after data showed retail sales increased by more than

expected in March.

Also providing early support were gains in some financial

stocks after their quarterly results, as Goldman Sachs ( GS )

gained 3.1% after its first-quarter profit beat Wall Street

estimates, fueled by a recovery in underwriting, deals and bond

trading that lifted its earnings per share to the highest since

late 2021.

M&T Bank ( MTB ) jumped 4.6% after forecasting

better-than-expected annual net interest income (NII), while

brokerage Charles Schwab ( SCHW ) advanced 2.2% despite

reporting a fall in quarterly profit. The stocks were the three

best performers in the S&P 500 financial sector.

But gains faded over concerns the hostilities in the Middle

East could continue to flare, and Treasury yields jumped, with

the benchmark 10-year U.S. Treasury note hitting its highest

level since November.

"You saw a little bit of a bounce this morning because maybe

people thought 'OK it sold off on Friday' in anticipation of

something really bad happening in the Middle East," said Ken

Polcari, managing partner at Kace Capital Advisors in Boca

Raton, Florida.

"All the geopolitical stuff is going to cause tension and

anxiety in the market, the realization that rates are not going

down anytime soon has got to be finally hitting home, that's

what the bond market is telling you, that rates are going to go

higher."

The Dow Jones Industrial Average fell 229.73 points,

or 0.61%, to 37,752.95, the S&P 500 lost 55.54 points, or

1.08%, to 5,067.88 and the Nasdaq Composite lost 260.93

points, or 1.61%, to 15,914.16.

Israel faced growing pressure from allies to show restraint

and avoid an escalation of conflict in the Middle East as it

considered how to respond to Iran's weekend missile and drone

attack.

Each of the 11 major S&P sectors were lower, with the

rate-sensitive real estate and utilities

sectors both falling more than 1 percent.

Stocks have struggled recently, with the S&P 500 suffering

two straight weeks of declines and its biggest weekly percentage

drop since October last week as investors have pushed back

expectations for the timing and size of any rate cuts from the

Federal Reserve.

Apple ( AAPL ) fell 2.1% as one of the biggest drags on the

S&P 500 after data from research firm IDC showed the company's

smartphone shipments dropped about 10% in the first quarter of

2024.

Tesla slumped 4.9% after the EV maker said it will

lay off more than 10% of its global workforce, according to an

internal memo seen by Reuters.

Salesforce ( CRM ) stumbled 6.9% after Reuters reported,

citing a source, that the customer relations software maker was

in advanced talks to acquire Informatica ( INFA ).

Declining issues outnumbered advancing ones by a 4.5-to-1

ratio on the NYSE and a 3.28-to-1 ratio on the Nasdaq.

The NYSE recorded 34 new 52-week highs and 112 new lows,

while the Nasdaq recorded 32 new highs and 295 new lows.