Shares in Groupon sunk by nearly 17 per cent on Monday as investors reacted to a restatement of revenue figures by the offers website as well as the company's admission of "material weakness" in its internal controls. Revenues for the largest online offers website by sales were lowered $14.3m to $492.2m, the company said late on Friday after trading. Groupon blamed the revision, which wiped out its operating profits for the final months of last year, on its failure to account properly for the increased likelihood of customers seeking refunds in its newest markets. Analysts were mixed in assessing the impact the restatement would have on its shares, which are trading almost 25 per cent below their initial public offer price of $20. Justin Post, analyst at Bank of America Merrill Lynch, said Groupon has been his team's most disappointing call of 2012. "While we remain constructive on the local deals opportunity, and we see this accrual change as an estimation mistake in an evolving hard-to-predict business, it should take several quarters for Groupon to gain investor confidence," he said, downgrading the company from "buy" to "hold" and lowering its price target from $30 to $20. Shares in Groupon finished down 16.9 per cent to $15.28 and have fallen by more than 26 per cent in the year to date. Avon, the door-to-door cosmetics seller, rose 17.3 per cent to $22.70 as it rejected a $10bn cash bid from Coty, the privately owned fragrance group. Avon rebuffed the latest Coty proposal one hour after the fragrance group made the bid offer public. Avon said the proposal undervalued it and that it was "substantially the same as" an offer made two weeks ago, which it had also rejected. Shares in the cosmetics group are now up by more than 30 per cent in the year to date. After a negative start to the day, the S&P 500 climbed 0.7 per cent to 1,418.90 and reached cyclical highs yet again, as the first session of the second quarter commenced. The benchmark index was buoyed by US manufacturing data that showed growth picked up in March on stronger hiring and production. The Institute for Supply Management's purchasing managers" index rose to 53.4 in March from the February reading of 52.4, beating economist estimates of 53. Elsewhere, the commerce department said construction spending unexpectedly dropped by the most in seven months despite the unseasonably warm weather. The Dow Jones Industrial Average rose 0.4 per cent to 13,264.49, while the Nasdaq Composite Index added 0.9 per cent at 3,119.70. Express Scripts , the health benefits manager, climbed 2.4 per cent to $55.50 as the Federal Trade Commission approved its merger with rival Medco Health Solutions . Shares in Medco were down 1 per cent to $71.85, having risen nearly 30 per cent in the year to date. Lions Gate Entertainment , producer of the television series Mad Men, fell 4.5 per cent to $13.30 as the company's latest blockbuster, Hunger Games, dominated box office returns for a second consecutive weekend, grossing $61.1m in ticket sales. Apple , the world's largest company by market value, added 3.2 per cent to $618.63 as a report said one analyst at Topeka Capital had set a price target of $1,001 for its shares, with "no end in sight" to its recent gains. Hartford Financial Services Group , the insurance provider, rose 4.1 per cent to $21.95 as the company said it would repurchase $2.43bn worth of securities it sold to Allianz, the German insurer, during the depths of the financial crisis. Under the terms of the deal, Hartford will replace $1.75bn of debt - yielding 10 per cent - it owes to Allianz with lower yielding new debt. Global Payments , a processor of credit and debit card transactions involving brands such as Visa and MasterCard, fell another 3.7 per cent to $45.74 as it updated markets on the security breach of its system. The processing company said on Sunday up to 1.5m card numbers in North America may have been stolen by hackers. Visa and MasterCard , the world's largest payment processors, were both up however on Monday, gaining 0.8 per cent and 2.7 per cent respectively.