NEW YORK (Reuters) - Banks dragged a stock market reduce on Monday, with waste accelerating late after Bank of America's batch cost fell below
$5 for a initial time in scarcely 3 years.
Warnings of deteriorating conditions in a euro section and concerns about worse collateral manners that could cut into large banks' increase pressured a financials via a day.
When BofA, a largest U.S. bank, plunged by $5, it lighted a late-day decrease in a section and a broader market, that fell 1 percent. More than 29 million shares of a batch traded, accounting for about 5.4 percent of a day's sum trading.
The bank's woes underscore a headwinds resistance a financial section on both sides of a Atlantic.
Comments from Mario Draghi, president of a European Central Bank, weighed on view after he pronounced a mercantile opinion contained estimable downside risks, adding that 2012 would be a formidable year for banks.
"If we supplement adult all a factors confronting banks, this only isn't a good sourroundings for financials, and given a lion's share of a worry in a marketplace is associated to financials, a bad understanding for them means a bad day for everyone," pronounced Mike Shea, handling partner and merchant during Direct Access Partners LLC in New York.
BofA sealed down 4 percent during $4.99 while JPMorgan Chase & Co
The Dow Jones industrial normal <.dji> was down 100.13 points, or 0.84 percent, during 11,766.26. The Standard & Poor's 500 Index <.spx> was down 14.31 points, or 1.17 percent, during 1,205.35. The Nasdaq Composite Index <.ixic> was down 32.19 points, or 1.26 percent, during 2,523.14.
There were signs that discreet investors were rotating into defensive sectors, with medical <.gspa> and consumer staples <.gsps> descending a least.
Traders also cited a Wall Street Journal news that a Federal Reserve was penetrating for U.S. banks to reason some-more collateral than compulsory by U.S. law as weighing on bank shares.
"Anything to gorilla around with collateral mandate will delayed down loan expansion and delayed down earnings, so any pointer of tweaking competence have an farfetched outcome on trading," pronounced John Norris handling executive of resources government with Oakworth Capital Bank in Birmingham, Alabama.
After descending scarcely 3 percent final week, Monday's waste brought a S&P 500 tighten to a 1,200 level, cited by traders as an critical support level. Losses could accelerate if that turn is breached.
"That we're impending 1,200 is adding a bit of fuel to this fire," Shea said.
Investors eyed developments in North Korea after a genocide of a leader, Kim Jong-il, and as state-controlled media hailed his untested son as a "Great Successor."
Adding to worries, Fitch warned on Friday it might hillside a ratings of France and 6 other euro section countries, observant a extensive resolution to a region's debt predicament was "technically and politically over reach".
In association news, Winn-Dixie Stores Inc
More than three-fourths of companies traded on a New York Stock Exchange fell while 76 percent of Nasdaq-listed issues sealed in disastrous territory.
(Reporting by Ryan Vlastelica; Editing by Kenneth Barry)
News referensi http://news.yahoo.com/stock-index-futures-signal-early-gains-100935037.html
