(By Salman - iStockAnalyst Writer)US stocks retreated on Monday as investors preferred to book profit after the recent rally. Shares also came under pressure due to weakness in financial and energy stocks.
The Dow Jones Industrial Average tumbled 155.88 points or 1.82% to finish at 8,418.77. The S&P 500 fell 19.99 points or 2.15% to end at 909.24. The Nasdaq Composite lost 7.76 points or 0.45% to 1,731.24.
Shares of financials finished with steep losses. Bank of America (NYSE:
BAC) tumbled $1.23 or 8.68% to $12.94.American Express (NYSE:
AXP) plunged $2.29 or 8.06% to $26.11. JP Morgan (NYSE:
JPM) slumped $3.11 or 7.99% to $35.83. Citigroup (NYSE:
C) plummeted 16 cents or 3.98% to $3.86. Shares of Wells Fargo & Co.(NYSE:
WFC) declined $1.65 or 5.86% to $26.53.
Meanwhile, Capital One Financial Corp. and BB&T Corp. announced large common stock offerings, proceeds of which will be used, subject to approval, to help repay preferred stock investments the government made as part of the bank bailout plan. The three banks that were among the 19 largest US banks to undergo government "stress tests", were among the nine found not to need more capital. U.S. Bancorp (NYSE:
USB) said it plans to raise $2.5 billion, Capital One Financial Corp (NYSE:
COF) announced that it intends to raise $1.75 billion while BB&T Corp (NYSE:
BBT) hopes to raise $1.5 billion.
Shares of BB&T Corp. decreased $1.99 or 7.56% to $24.34. US Bancorp retreated $2.04 or 9.93% to $18.50 while Capital One Financial declined $4.24 or 13.53% to $27.10.
Energy stocks settled lower. Exxon Mobil Corp. (NYSE:
XOM) fell $1.11 or 1.57% to $69.27. Chevron Corp.
