U.S. Stocks Drop on Earnings Concern; Bank of America Retreats

April 21 (Bloomberg) -- U.S. stocks fell for the first time in five days after worsening credit losses at Bank of America Corp. and National City Corp. undermined confidence that banks are overcoming the subprime mortgage market's collapse.

Bank of America, the second-largest U.S. bank by assets, retreated after bad loans caused first-quarter profit to trail analysts' estimates. National City tumbled to a 17-year low as Ohio's biggest lender was forced to cut its dividend and sell stock at a 40 percent discount to last week's closing price. Schlumberger Ltd., the world's largest oilfield-services company, led a rally in energy shares that limited the market's decline, after oil rose to a record above $117 a barrel.

Source: Bloomberg


Post a Comment

You are welcome to post comments. However, please do not use Anonymous as your ID. At least, put in your initials for easy reference in further conversations.