11/28 17:18
U.S. Stocks Fall, Led by Financial Shares; Citigroup and J.P. Morgan Drop
By Robert Dieterich
bloomberg.com
New York, Nov. 28 (Bloomberg) -- U.S. stocks fell, led by banks and energy traders, after Enron Corp.'s sale to Dynegy Inc. collapsed. Citigroup Inc. and J.P. Morgan Chase & Co., Enron's biggest lenders, dragged the Dow Jones Industrial Average lower.
Enron is ``deeply entwined with all the financial institutions and they have just blown up,'' said Alan Kral, who helps manage $700 million at Trevor Stewart Burton & Jacobson Inc.
General Electric Co., the top maker of turbines for power plants and an investor in power projects through its finance arm, fell. Of the 71 financial stocks in the Standard & Poor's 500 Index, 64 declined.
The Dow lost 160.74, or 1.6 percent, to 9711.86. The S&P 500 fell 20.98, or 1.8 percent, to 1128.52, with all 11 industry groups declining. It was the index's biggest loss in a month.
The Nasdaq Composite Index dropped 48, or 2.5 percent, to 1887.97.
Stocks extended declines in the afternoon after a Federal Reserve survey said the U.S. economy showed few signs of improvement in late October and the first half of November. |
