REFILE-US STOCKS-Wall St slides as retailers, financials weigh

(Refiles to fix typo in paragraph 5)

* Euro-zone debt loads weigh on markets

* Credit card sector drops after Senate vote

* J.C. Penney, Nordstrom down after results

* Dow off 1.5 pct, S&P off 1.9 pct, Nasdaq off 2 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates close with jump in VIX index in new paragraph 4)

By Edward Krudy

NEW YORK, May 14 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) fell on Friday on
a combination of weak earnings from retailers, Senate backing
for limits on credit card fees and concerns over the
sustainability of European public debt.

Bank and credit card companies’ shares slumped a day after
the Senate voted to limit fees charged on credit and debit
card transactions. The limits added to fears that beefed-up
financial reform legislation could hurt profits in the sector.
Visa’s stock fell almost 10 percent.

Investors who had taken comfort in signs of strength in
the U.S. economy were faced with more below-par forecasts from
retailers such as Nordstrom Inc (JWN.N: ) and J.C. Penney Co Inc
(JCP.N: ), casting doubt on the strength of the recovery in
consumer spending.

Daily volume was above average while declining stocks
outnumbered advancers by a ratio of about 7 to 1 on the New
York Stock Exchange. The CBOE Volatility Index (.VIX: ), or VIX,
a measure of market turbulence, surged 17.1 percent to 31.24,
echoing moves when the stock market plunged last week.

Peter Boockvar, an equity strategist at Miller Tabak & Co.
in New York, said the notion that the U.S. economy would make
up for weakness in Europe had suffered a setback this week. He
cited a cautious tone from Cisco Sytems Inc (CSCO.O: ) on
Wednesday as well as poor earnings from retailers.

“You have four things to (go into) GDP — you have
consumption, you have investment, you have government and you
have trade — three of those four were hit,” he said.

The Dow Jones industrial average (.DJI: ) dropped 162.79
points, or 1.51 percent, to end at 10,620.16. The Standard &
Poor’s 500 Index (.SPX: ) fell 21.76 points, or 1.88 percent, to
1,135.68. The Nasdaq Composite Index (.IXIC: ) lost 47.51
points, or 1.98 percent, to close at 2,346.85.


Stocks rallied sharply on Monday after news that European
Union finance ministers had agreed to a $1 trillion aid
package for debt-laden Greece. But the optimism was
short-lived, with stocks down three days this week.

Despite Friday’s sharp sell-off, all three major U.S.
stock indexes scored their biggest weekly percentage advance
in the last 10 weeks, thanks largely to Monday’s gains.

For the week, the Dow rose 2.3 percent, the S&P 500 added
2.2 percent and the Nasdaq climbed 3.6 percent. However, after
the recent volatility the Dow and the S&P 500 are up just 1.8
percent for the year, while the Nasdaq is up 3.4 percent.


As the initial optimism over moves to stem the euro-zone
debt crisis ebbed, investors moved out of riskier assets.
Global shares and commodity prices dropped sharply while the
euro sank to an 18-month low against the dollar. Gold, a
classic safety play, hit a record high before getting caught
up in the commodities sell-off.

Deutsche Bank (DBKGn.DE: ) Chief Executive Josef Ackermann,
echoing sentiment among many investors, said he doubted that
Greece could repay its debt, but the $1 trillion euro-zone
rescue would help stabilize Italy and Spain. [ID:nLDE64D08M]

Euro/dollar and S&P 500 25-day rolling correlation has
strengthened to a robust 85 percent, the highest since
mid-February on growing fears that slow growth in Europe will
hurt corporate profits. For Reuters analysis and a Factbox on
S&P 500 exposure to Europe, see [ID:nN07272417] and


The S&P financial index (.GSPF: ) shed 2.7 percent, with
credit card companies among the heaviest losers. Visa Inc
(V.N: ) dropped 9.9 percent to $77.26. Shares of MasterCard
(MA.N: ), known for its “Priceless” advertising slogan, sank 8.6
percent to $212.45. [ID:nN13100251]

The S&P retail index (.RLX: ) fell 1.2 percent, with
Nordstrom down 3.7 percent at $39.76 and J.C. Penney off 2.2
percent at $27.54.

Shares of Nvidia Corp (NVDA.O: ) slid 11.5 percent to $12.96
a day after the graphics chip maker forecast sales below
estimates. [ID:nN12201459]

In the retail sector, Dillard’s Inc (DDS.N: ) reported
profit that topped estimates, driving its stock up 7.9 percent
to $27.76. [ID:nN14163914] and [ID:nSGE64D0HV]

Energy companies’ shares fell, with the S&P energy index
(.GSPE: ) off 2 percent as crude futures prices fell to a
three-month low on swollen U.S. crude inventories and concerns
about Europe. [ID:nSGE64D05E]

About 11.02 billion shares traded on the New York Stock
Exchange, the American Stock Exchange and Nasdaq, above last
year’s estimated daily average of 9.65 billion.

On the Nasdaq, more than 11 stocks fell for every two that

Stock Market News

(Reporting by Edward Krudy; Editing by Jan Paschal)

REFILE-US STOCKS-Wall St slides as retailers, financials weigh