US market slips on economic fears, McDonald's gains

NEW YORK -- U.S. stocks slipped on Monday as mounting concerns about the economy overshadowed stronger-than-expected same-store sales from McDonald's Corp.

Industrial conglomerates, including United Technologies (UTX.N) and 3M (MMM.N), seen as economic bellwethers, were among the biggest drags on the Dow. Energy companies, including Chevron Corp (CVX.N), fell on a pullback in energy prices.

Falling for a third straight session. stocks hit their lowest level in 19 months on Friday after a report showed that employers unexpectedly shed jobs at the steepest rate in nearly five years, confirming for many investors that the United States is in a recession.

But McDonald's, the world's largest fast-food chain, was a bright spot. Sales at restaurants open at least 13 months rose in February more than Wall Street's expectations, helped by U.S. coffee sales and strength overseas. The Dow component's stock rose 3 percent to $53.87. For details, see .

Talk of an emergency interest rate cut by the Federal Reserve also helped keep losses in check. Goldman Sachs said in a note they "could not rule out an intermeeting cut." The Fed's interest-rate policy meeting is scheduled for March 18.

"We could have had an uglier morning given the economic backdrop, but we had some talk of a rate cut, and that Goldman note. We're in a digestion period," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.

The Dow Jones industrial average (.DJI) was down 32.56 points, or 0.27 percent, at 11,861.13. The Standard & Poor's 500 Index (.SPX) was down 4.26 points, or 0.33 percent, at 1,289.11. The Nasdaq Composite Index (.IXIC) was down 2.62 points, or 0.12 percent, at 2,209.87.

United Technologies shares fell 1.6 percent to $66.38, while 3M shares fell 0.9 percent to $75.86. Chevron shares slipped 0.6 percent to $84.75.

Countrywide Financial Corp (CFC.N) shares fell 6.5 percent to $4.75 after the New York Times reported that the FBI has begun a criminal inquiry into the largest U.S. mortgage lender.

(Agencies)