GE, financial shares lead stock market lower
new york — Stocks slid the most in two weeks Friday as analysts cut earnings estimates for General Electric Co. and Congress moved toward raising taxes on bank employees bonuses.
GE lost 5.8 percent after presenting what investors called a more sober assessment of its earnings. Bank of America Corp., Wells Fargo & Co. and JPMorgan Chase & Co. led financial shares to the biggest drop among the 10 main industry groups in the Standard & Poor’s 500 index. American International Group Inc. slumped 22 percent as 19 states began probing its employee bonuses.
The S&P 500 tumbled 2 percent to 768.54. The Dow Jones industrial average slid 122.42 points, or 1.7 percent, to 7,278.38. The Nasdaq composite index decreased 1.8 percent to 1,457.27. The S&P 500 rose 1.6 percent this week. The Dow added 0.8 percent and completed is first consecutive weekly advances since May.
GE tumbled 59 cents to $9.54.
Bank of America, the biggest U.S. bank by assets, fell 11 percent to $6.19 for the biggest drop in the Dow payday loan. Wells Fargo, the largest on the West Coast, lost 9.3 percent to $13.99. JPMorgan Chase, the biggest by market value, slid 7.2 percent to $23.15.
American International Group Inc. lost 39 cents, or 24 percent, to $1.23 for the biggest decline in the S&P 500.
Schlumberger Ltd. and Halliburton Co. led oilfield service and equipment companies lower. Citigroup analyst Robin Shoemaker said first-quarter earnings for the group may fall short of estimates. Schlumberger declined 6.3 percent to $41.52. Halliburton lost 5.5 percent to $16.84.
Ford Motor Co. gained 9.6 percent to $2.75, the highest since Jan. 6. The second-largest U.S. automaker was rated "buy" at UBS AG. General Motors Corp., the largest, added 11 percent to $3.18, a one-month high.
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