U.S. stocks retreated after reports showed that Spain slipped into a double-dip recession in the first quarter and American consumer spending slowed down last month.
S&P 500 Index lost 0.39 percent to finish at 1,397.90. The Dow Jones Industrial Average dipped 0.11 percent to end at 13,213.63. The Nasdaq Composite Index closed at 3,046.36, down 0.74 percent.
Spain's gross domestic product shrank 0.3 percent in the first three months of 2012, following a 0.3 percent decline in the fourth quarter of 2011, according to a report from the statistical office INE. Economists had expected a 0.5 percent fall.
On the US economic front, personal income rose 0.4 percent and personal spending advanced 0.3 percent for March, a data from the Bureau of Economic Analysis showed. In February, personal income gained 0.3 percent and spending rose 0.9 percent. Economists expected a 0.3 percent increase in income and a 0.4 percent rise in spending in March.
Another data showed that the Institute for Supply Management-Chicago's business barometer dropped to 56.2 during April from 62.2 in March, reaching a 29-month low. Business activity in the Midwest registered a sharp drop in April as new orders fell, a report showed.
Hot Stocks Of The Day: BKS, SUN, GPRO, HOLX, HUM, NYX, PAY
Barnes & Noble Inc. (NYSE:BKS) shares shot up 51.6 percent after Microsoft (NASDAQ: MSFT) agreed to invest $300 million in the company's Nook digital reader and college businesses. Microsoft will hold a 17.6 percent interest in the new unit, named Newco, while Barnes & Noble will own about 82.4 percent. MSFT shares edged 0.11 percent higher.
Sunoco Inc. (NYSE:SUN) soared 20.4 percent after Energy Transfer Partners L.P. (NYSE: ETP) agreed to buy the petroleum refiner for $50.13 per share, or around $5.3 billion in cash and unit deal. ETP stock rose 3.6 percent.
Gen-Probe Inc. (NASDAQ:GPRO) jumped 18.6 percent after Hologic Inc. (NASDAQ: HOLX) agreed to acquire the developer of molecular diagnostic products for $82.75 per share in cash, or a total enterprise value of around $3.7 billion, to boost its offerings in women's health franchise.