12 May 2009

Wall St drops on profit-taking in banks, energy

1:27 pm on 12 May 2009

US stocks fell on Monday as investors booked profits in financials after a two-month run-up and news of several banks' share offerings heightened worries about their dilutive impact on current shareholders.

With government stress tests on big banks out of the way, and after a steep rise from March lows, investors sold some financials and took some of their recent gains.

JPMorgan Chase & Co slid 8% to $US35.83 and Bank of America Corp dropped 8.7% to $US12.94. Citigroup fell 4% to $US3.86, and Wells Fargo shed nearly 6% to $US26.53.

Technology shares fared better, however, on the day after German software maker SAP's co-chief executive said the next few months may bring "glimmers of hope" for the global economy. Big-cap software makers, including Oracle Corp, were standouts and the Nasdaq finished near break-even.

The Standard & Poor's 500 Index declined 19.99 points, or 2.15%, to 909.24. The Dow Jones industrial average shed 155.88 points, or 1.82%, to 8,418.77.

The Nasdaq Composite Index dipped 7.76 points, or 0.45%, to 1,731.24.