US STOCKS-Euro zone debt woes weigh on Wall Street

* Worries over euro zone sovereign debt weigh

* Banks lead financials lower on Euro zone exposure fears

* Dow off 0.3 pct; S&P 500 off 0.8 pct, Nasdaq flat

* For up-to-the-minute market news, click [STXNEWS/US]
(Updates to late afternoon, changes byline)

By Ellis Mnyandu

NEW YORK, Feb 8 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) fell on Monday on
fears that possible fallout from the euro zone’s sovereign debt
troubles might force banks to raise capital, diluting the
holdings of existing share owners.

Bank stocks fell broadly, weighed down by the sector’s
potential exposure to sovereign risk and lingering uncertainty
about the regulatory environment.

Bank of America (BAC.N: ) shares dropped 2.5 percent to
$14.64, while JPMorgan (JPM.N: ) slipped 0.4 percent to $38.15,
and Citigroup (C.N: ) shed 0.9 percent to $3.19. The S&P
financial index (.GSPF: ) dropped 1.2 percent as the KBW bank
index (.BKX: ) dipped 0.3 percent.

“The European banks have been under pressure most of the
day and I feel the American banks are following that,” said
David Lutz, managing director of trading at Stifel Nicolaus
Capital Markets in Baltimore.

“There are now some concerns not only about some of the
regulatory issues that the banks might be under, but also about
the increased possibility of capital raises from some of the
banks. I think most of it is probably the sovereign issue.”

The Dow Jones industrial average (.DJI: ) declined 29.62
points, or 0.30 percent, at 9,982.61. The Standard & Poor’s 500
Index (.SPX: ) dropped 0.76 point, or 0.07 percent, at 1,065.43.
The Nasdaq Composite Index (.IXIC: ) rose 1.62 points, or 0.08
percent, to 2,142.74.

Heightened concerns about the fiscal stability of Greece,
Portugal and Spain have buffeted U.S. stock investors over the
last two weeks, curbing the appetite for riskier assets and
raising fears of possible contagion.

Wall Street has slid through critical levels, with the Dow
now back below 10,000 and the benchmark S&P 500 now off more
than 7 percent from its 15-month closing peak of Jan. 19. The
S&P 500 is still up 57 percent from its March 2009 bottom.

Investment Basics

(Editing by Kenneth Barry)

US STOCKS-Euro zone debt woes weigh on Wall Street