NEW YORK (TheStreet) -- U.S. stocks werealower on Monday after Brazilian President Dilma Rousseff was re-elected in a runoff vote on Sunday. Stocks in the energy sector were leading the decline. Stocks also reacted to weaker-than-forecast economic data from Europe that continued to point to a prospect of deflation in the region, and disappointing housing data in the U.S. TheaS&P 500 opened down 0.67%. The Nasdaq was down 0.39% and Dow Jones Industrial Average futures fell 0.43%. Must Read: Warren Buffett's Top 10 Dividend Stocks Dilma Rousseff of the Workers Party was re-elected on Sunday as Brazil's president, taking 51.4% of the vote in a hotly contested runoff against Aecio Neves of the Social Democracy, who took 48.5% of the vote. Rousseff, who ran on a platform of poverty reduction, has been president of Brazil since October 2010. In recent years, her popularity has fallen amid inflation in Brazil, corruption and the BRIC country's worsening economic performance. On Monday, the Bovespa, Brazil’s main stock index, fella6%. The Brazilian real fell 3.2% vs. the U.S. dollar, its biggest drop in three years. Energy producers tumbled on the election results, with Brazil's largest oil company, Petrobras , tumbling more thana14% to $11.06. U.S. giants Exxon Mobil and Chevron fell more thana1.5%, while oil services giants Halliburton and Slumberger fell 5.63% and 4.29%, respectively. Oil also fell sharply in early trading, with Nymex West Texas Intermediate crude trading at multi-year lows below $80 a barrel in reaction to a Goldman Sachs downgrade. Investors got a disappointing read on the housing market in the U.S. on Monday. Pending home sales for September rose just 0.3%, below forecasts of a 1% rise in pending sales. Separately, U.S. services PMI fell more than forecast to 57.3, falling below expectations to a six-month low. In Europe, economic data from core countries such as Germany continued to point to a prospect of deflation, potentially giving reason for the European Central Bank to begin telegraphing stronger measures to provide stimulus to financial markets in the region. On Monday, the German Ifo Institute's business climate index fell for a sixth straight month to its lowest reading in nearly two-years. The Ifo index, which is based on a survey of regional business executives, dropped to 103.2 in October, missing forecasts, according to the median estimate compiled by Bloomberg. That disappointing data comes as investors continue to fear that the eurozone is falling into recession. Other gauges of the German economy, the strongest performer in the European Union, also pointed to declines. While QE in the U.S. is set to expire in October, some governors of the central bank have said the program should be extended. The Federal Reserve will convene its monthly meeting on Tuesday and Wednesday, with investors closely watching for any extension to QE. The European Central Bank said on Sunday there was a capital shortfall of 25 billion euros at 25 banks as of the end of last year. However, in a news release announcing the results of its stress tests, the ECB said Sunday that 12 banks had already covered their capital shortfalls, leaving 13 banks still short of capital. These 13 must prepare capital plans within the next two weeks and will have nine months to cover their shortfalls, the release said. Moody's views the results of the [stress test] as "credit positive for euro area bank creditors, with the most notable outcomes of the exercise being the progress toward balance-sheet repair and the improved transparency of bank accounts," Moody's managing director Carola Schuler said in a report. Third-quarter corporate earnings continue, with Merck beating profit estimates but missing on sales forecasts. Shares in the pharmaceutical giant were trading over 1% loweraat $56.88 in early trading. Botox-maker Allergan , which continues to contest a hostile takeover bid from Valeant Pharmaceuticals , beat earnings forecasts by 10 cents, reporting a profit of $1.78 a share in the third quarter. The company's shares rose more than 1.5% to $187 in earlyatrading after Valeant said it was willing to improve its takeover offer to at least $200 a share. After the market close, Twitter , Manitowoc , Cliffs Natural Resources and T-Mobile will report earnings. Twitter is forecast to earn 1 cent a share, while Manitowoc is forecast to earn 41 cents and Cliffs is expected by analysts to earn 1 cent a share in the third quarter. Analysts expect a quarterly profit of 5 cents a share from T-Mobile. Must Read: Warren Buffett's Top 10 Dividend Stocks -- Written by Antoine Gara in New York Follow @AntoineGara // 0;if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); // ]]>
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