US STOCKS-Wall Street falls as banks, economy weigh

* Shares fall as recovery seen stalling

* Bank shares drop as legislation enters endgame

* Dow off 1 pct, S&P off 1.3 pct, Nasdaq off 1.3 pct

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

By Rodrigo Campos

NEW YORK, June 24 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) fell broadly on
Thursday on worries the economic recovery was slowing, with
banks pressured by final negotiations over a U.S. regulatory
overhaul.

Democrats, in charge of hammering out a final bill,
appeared likely to impose restrictions on banks’ trading and
investment activities that could crimp profits. For details see
[ID:nN23235380].

Dow component JPMorgan Chase & Co (JPM.N: ) fell 2.7 percent
to $37.85 and the KBW bank index (.BKX: ) lost 1.5 percent.

“Clearly the regulation coming out of Washington is a
concern, and as we get closer and closer, there are more and
more rumors and the stocks are reacting,” said David Katz,
chief investment officer at Matrix Asset Advisors in New York.

The Dow Jones industrial average (.DJI: ) dropped 108.45
points, or 1.05 percent, to 10,189.99. The Standard & Poor’s
500 Index (.SPX: ) fell 14.60 points, or 1.34 percent, to
1,077.44. The Nasdaq Composite Index (.IXIC: ) lost 29.58 points,
or 1.31 percent, to 2,224.65.

In bearish technical signs, the S&P opened below its 14-day
moving average and breached the 1,083 level, a key retracement
of the slide from its high in April to the year’s low on May
25.

A drop in initial jobless claims and a rise in a gauge of
long-lasting manufactured goods failed to offset weak economic
news recently on retail and housing. The Federal Reserve’s
subdued assessment about the economy underscored concerns.
[ID:nN24110731].

Retailer stocks were among the top decliners, with JC
Penney (JCP.N: ) down 5.2 percent to $23.39 and the S&P retail
index (.RLX: ) was off 2.1 percent.

“Housing looks like it’s going into a double dip, and if
that’s the case it will be a headwind to the economy and puts a
leash in consumer spending,” said Bruce Bittles, chief
investment strategist at Robert W. Baird & Co in Nashville.

Lennar Corp (LEN.N: ), the third-largest U.S. homebuilder,
reported higher-than-expected quarterly earnings and affirmed
its goal of becoming profitable for the year even as orders
declined. Its shares were down 0.7 percent at $14.64.

Shares of Nike Inc (NKE.N: ) tumbled 3.8 percent to $69.75
after the footwear and clothing maker cautioned that the strong
dollar and higher costs would weigh on earnings and sales.

Pfizer Inc (PFE.N: ) lost 2.4 percent to $14.53 after it
suspended clinical trials of its experimental arthritis drug.
[ID:nN23207559]

Stock Market Analysis

(Reporting by Rodrigo Campos; Additional reporting by Leah
Schnurr; Editing by Kenneth Barry)

US STOCKS-Wall Street falls as banks, economy weigh