Stocks Lose Balance In Final Hour To Close Lower

Despite positive news on the economic front, stocks could not hold onto gains and tumbled in the final hour of trading as weakness in the energy sector could not be contained.

The Dow finished down 113 points to 10,024, the Nasdaq lost 35 points and the S&P 500 dropped 19.

Manufacturing activity in May showed continued expansion. The Institute for Supply Management index was reported at 59.7. While down from the pace of 60.4 percent in April, it was above economist expectations of 59 and was above 50, which signals growth.

Construction spending showed a sharp 2.7 percent increase in April. This was the largest increase since 2000 and was well ahead of predictions from economists of no growth.

Shares of BP (NYSE: BP) were absolutely slammed today after the company's "top kill" effort failed. The company will now focus on containing the spill, versus plugging it.

BP fell 15 percent today, but the weakness was felt throughout in the sector. Transocean Ltd. (NYSE: RIG), which was the owner of the blown-up oil rig, fell nearly 12 percent. Halliburton (NYSE: HAL) and Anadarko Petroleum (NYSE: APC), which also have some shared-blame in the spill, fell 15 percent and 20 percent respectively today. The ETF for the sector, Energy Select Sector SPDR (NYSE: XLE), fell 4.8 percent today.