NEW YORK -- U.S. stocks slumped Monday, and banks took the biggest losses. Deutsche Bank plunged as investors worried about the financial health of Germany's largest bank.
The Dow Jones industrial average fell 166.62 points, or 0.9 percent, to 18,094.83. The Standard & Poor's 500 index fell 18.59 points, or 0.9 percent, to 2,146.10. The Nasdaq composite dropped 48.26 points, or 0.9 percent, to 5,257.49. Stocks are coming off two weeks of solid gains, and the Nasdaq set record highs twice last week.
European banks tumbled after the German magazine Focus said Deutsche Bank won't get a government bailout if it asks for one. Its report, published Friday, cited "government circles" as its source.
"There's some stress in the banking industry there, and questions about whether governments have the will to step in," said Steve Chiavarone, associate portfolio manager for Federated Investors.
Other banks also tumbled. Goldman Sachs took the largest loss among Dow stocks and sank $3.65, or 2.2 percent, to $161.48. Citigroup shed $1.26, or 2.7 percent, to $45.89.
Bond prices rose. The yield on the 10-year U.S. Treasury note fell to 1.58 percent from 1.62 percent. That also affects banks, as lower bond yields mean lower interest rates and smaller profits on lending.
Stocks overseas also weakened. The DAX in Germany dropped 2.2 percent, and France's CAC 40 fell 1.8 percent. In Britain, the FTSE 100 was down 1.3 percent. Japan's benchmark Nikkei 225 edged down 1.3 percent. South Korea's Kospi slipped 0.3 percent, and Hong Kong's Hang Seng lost 1.7 percent.
Home Depot and Lowe's sank after the government said sales of new homes fell almost 8 percent in August. That followed a big jump the month before. Although sales of new homes have risen over the past year, there aren't a lot of houses on the market.
Home Depot shed $2.34, or 1.8 percent, to $125.45, and Lowe's fell $1.54, or 2.1 percent, to $70.81.
Pfizer, one of the largest drug companies in the world, traded lower after it said it will not split into two smaller companies. Some of its investors had supported that plan in the hope it would bolster the value of their stock and accelerate growth, but lately the Viagra maker has been signaling that it probably wouldn't break up. Its stock fell 62 cents, or 1.8 percent, to $33.64.
Oil prices bounced higher as investors monitor a meeting of oil producers in Algeria. Benchmark U.S. crude rose $1.45, or 3.3 percent, to $45.93 a barrel in New York. Brent crude, the international benchmark, rose $1.46, or 3.2 percent, to $47.35 a barrel in London. Oil exploration companies rose the most. Transocean climbed 42 cents, or 4.6 percent, to $9.52, and Noble Energy added 60 cents, or 1.8 percent, to $33.62.
Casual clothing retailer Lands' End skidded after the departure of its chief executive officer. Federica Marchionni left Dolce & Gabbana to join Lands' End less than two years ago but was unable to stop a decline in sales. Lands' End stock lost $2.54, or 14.1 percent, to $15.46.
Gold edged up $2.40 to $1,344.10 an ounce. Silver dipped 21 cents to $19.60 an ounce. Copper stayed at $2.20 a pound.
Business on 09/27/2016