US STOCKS-Markets sink on euro-zone fears; financials slide

* Euro-zone debt loads weigh on markets

* Credit card sector drops after Senate vote

* J.C. Penney down after results, Dillard’s rises

* Indexes off: Dow 1.6 pct, S&P 2 pct, Nasdaq 2.4 pct

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

By Ryan Vlastelica

NEW YORK, May 14 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) tumbled on Friday
on worries that heavy euro-zone debt loads could stymie a
global recovery, while Visa and MasterCard led the financial
sector lower after the U.S. Senate backed limits on card fees.

The initial optimism over moves to stem the euro-zone debt
crisis ebbed on concerns the efforts won’t be enough, and that
plans to rein in national budgets could stifle growth. For
details, see [ID:nLDE64C1TS] and [ID:nEU]

Deutsche Bank’s chief executive, who had helped to craft a
private-sector bailout package for Greece, said he doubted
Athens could repay its debt, adding that a new $1 trillion
euro-zone rescue would help stabilize Italy and Spain.

“Everyone was excited when the news of the package came
out, but now that we’ve had time to analyze it, many people are
thinking that it may not be enough,” said Peter Lewis, fund
manager at Murphy Capital Management in Gladstone, New Jersey.

“The worst scenario is that these issues spread across
Europe, which would put a lot of fear into our markets.”

The euro fell (Read more about the trembling euro. ) to an 18-month low against the dollar and
global shares dropped sharply while gold hit record highs.

Credit card and other financial companies slumped one day
after the Senate voted to limit fees charged on credit and
debit card transactions. The S&P Financial sector (.GSPF: ) shed
3 percent, while Visa Inc (V.N: ) dropped nearly 10 percent to
$77.52, and MasterCard (MA.N: ) sank 7.5 percent to $215.01.

“Regulation is always a concern for the market, but this
sell-off may be overdone since not all the details are clear
yet,” Lewis said.

The Dow Jones industrial average (.DJI: ) was down 172.77
points, or 1.60 percent, at 10,610.18. The Standard & Poor’s
500 Index (.SPX: ) dropped 23.52 points, or 2.03 percent, at
1,133.92. The Nasdaq Composite Index (.IXIC: ) sank 57.57 points,
or 2.40 percent, at 2,336.79.

Shares of Nvidia Corp (NVDA.O: ) weighed on the Nasdaq,
sliding 13.5 percent to $12.66 a day after the graphics
chipmaker forecast sales below estimates. [ID:nN12201459]

Also on the earnings front, both J.C. Penney Co Inc (JCP.N: )
and Dillard’s Inc (DDS.N: ) reported quarterly results. Dillard’s
rallied 12 percent to $28.69 as profit topped estimates, while
Penney dipped 2.4 percent to $27.50 on a weak outlook.
[ID:nN14163914] and [ID:nSGE64D0HV]

Energy companies fell, with the S&P Energy sector (.GSPE: )
off 2.6 percent as crude futures fell to a three-month low on
swollen U.S. crude inventories and concerns about Europe.

A batch of positive economic data helped to pull stocks off
lows. Retail sales and industrial production for April both
rose, while business inventories climbed to an 8-month high in
March, and consumer sentiment edged up in May as forecast.

Stock Market Analysis

(Editing by Jeffrey Benkoe)

US STOCKS-Markets sink on euro-zone fears; financials slide