(By Salman - iStockAnalyst Writer)

US stocks extended finished mixed on Monday as investors focused on a stream of economic data and quarterly earnings. Nasdaq gained over 1% as technology stocks rallied.

The Dow Jones Industrial Average shed 64.11 points or 0.80% to finish at 7,936.75. The S&P 500 fell 0.44 points or 0.05% to 825.44. The Nasdaq Composite rose 18.01 points or 1.22% to 1,494.43.

A report by Commerce Department showed US consumer spending dropped 1% in January. Economists expected consumer spending to decrease 0.4%. Net income fell 0.2% in December.

In a separate report, Commerce Department said that total construction spending fell by 1.4 percent in December, worse then the consensus estimates of 1.2% decline.

The Institute for Supply Management reported that its index of manufacturing activity rose to 35.6 in January from from 32.9% in December.

Macy’s Inc. (NYSE: M) skidded 36 cents or 4.02% to $8.59 after  the second-largest US department-store company announced on Monday that it will slash 7,000 jobs or about 4% of its workforce. Macy's also said it will reduce its quarterly dividend to 5 cents from 13.25 cents and will cut its 2009 capital expenditures budget to about $450 million, down from an earlier estimate in the range of $550 million to $600 million.

Early on Monday, toy maker Mattel Inc. (NYSE: MAT) announced that fourth-quarter profit plunged 46% to $176.4 million, or 49 cents a share, from $328.5 million, or 89 cents a share, in the year ago quarter. Revenue decreased 11% to $1.94 billion from $2.19 billion.

Rockwell Automation Inc. (MYSE: ROK) tumbled $2.88 or 11.06% to $23.16 after it reported that its fiscal first quarter net earnings fell 25% to $118 million, or 83 cents a share, compared to $157 million, or  $1.04, in the same period a year ago. The company also lowered its 2009 profit guidance to a range of $1.55 to $2.25 compared to a previous estimate of $3.10 to $3.60. Shares of the company sank $2.29 or 16.14% to end at $11.90.

Shares of Humana Inc. (NYSE: HUM) jumped $2.20 or 5.80% to $40.13 after the health insurer said that its fourth-quarter fell 28% to $174.1 million or $1.03 a share from $243.2 million, or $1.43 a share, in the prior year quarter.

Applied Materials Inc (NASDAQ: AMAT) warned that it would post a quarterly loss due to "unprecedented business conditions."

Anadarko Petroleum (NYSE: APC), Aflac (NYSE: AFL) and SanDisk (NASDAQ: SNDK) are scheduled to report quarterly earnings after market close on Monday.

Among financials, Bank of America (NYSE: BAC) plunged 58 cents or 8.81% to $6. J.P Morgan (NYSE: C) retreated 32 cents or 1.25% to $25.19.

Boeing (NYSE: BA) slipped $1.51 or 3.57% to $40.80.

Shares of General Motors (NYSE: GM) slumped 12 cents or 3.99% to $2.89.

Diversified US firm General Electric (NYSE: GE) dropped 51 cents or 4.20% to $11.62.

Consumer giant Procter & Gamble Company (NYSE: PG) plummeted $1.45 or 2.66% to $53.05.

Insurer Hartford Financial Services Group (NYSE: HIG) rallied $1.96 or 14.89% t $15.12.

Among technology stocks, Microsoft Corp. (NASDAQ: MSFT) rose 73 cents or 4.27% to $17.83. Chipmaker Intel Corp. (NASDAQ: INTC) surged 73 cents or 5.66% to $13.63.

According to Semiconductor Industry Association, global chip sales dropped 2.8% to $248.6 billion in 2008 from $255.6 billion in previous year. In December alone, chip sales fell 22% to $17.4 billion from $22.3 billion in December 2007.

European stocks finished with losses. The U.K. FTSE fell 71.86 points or 1.73% to close at 4,077.78. The German DAX and French CAC slumped 1.55% and 1.46% respectively.

Asian stocks finished lower. The Nikkei 225 fell 120.07 points or 1.50% to 7,873.98. Hang Seng Index in Hong Kong slumped 416.72 points or 3.14% to end at 12,561.49.

NYMEX crude oil for March delivery declined $1.63, or 3.9%, to settle at $40.05 a barrel.
 
Disclosure: Author does not own any of the stocks discussed here.