* European bank reports hit financials
* Oracle rises after Hurd hiring
* Indexes off: Dow 0.8 pct, S&P 1 pct, Nasdaq 0.7 pct
* For up-to-the-minute market news see [STXNEWS/US]
(Updates to midmorning)
By Chuck Mikolajczak
NEW YORK, Sept 7 Wall Street fell on Tuesday
after reports on the European banking system reignited concerns
about the financial stability of the region.
The European bank stress tests intended to measure the
strength of major banks understated holdings in potentially
risky government debt, the Wall Street Journal reported.
Separately, Germany's banking association said the
country's 10 biggest banks may need 105 billion euros ($134
billion) in new capital as it revamps regulations designed to
prevent future crises. For details, see [ID:nLDE6850Q9]
"It certainly is an issue that keeps resurfacing," said
Peter Jankovskis, co-chief investment officer at OakBrook
Investments LLC in Lisle, Illinois. "I'm not sure how deep the
concern goes currently, but it's a ready excuse to take some
money off the table."
Barclays Plc's (BCS.N) U.S.-traded shares dropped 5.3
percent to $19.21, while Deutsche Bank AG's (DB.N) ADRs were
down 3 percent to $62.63, and UBS AG UBSN.VX(UBS.N) ADRs
dipped 2.7 percent to $17.55.
U.S. banks were also lower, with Bank of America Corp
(BAC.N) shedding 1.5 percent to $13.29, and JP Morgan Chase &
Co (JPM.N) off 1.7 percent to $38.50. The KBW Bank index .BKX
lost 2.2 percent.
The Dow Jones industrial average .DJI dropped 80.15
points, or 0.77 percent, to 10,367.78. The Standard & Poor's
500 Index .SPX lost 10.21 points, or 0.92 percent, to
1,094.30. The Nasdaq Composite Index .IXIC fell 15.73 points,
or 0.70 percent, to 2,218.02.
Wall Street posted its best week in the last two months,
lifted by stronger-than-expected economic data that had quelled
fears of a double-dip recession.
Oracle Corp ORCL.O, jumped 6.5 percent to $24.42 after
the world's third-largest software maker hired Mark Hurd, the
former chief at Hewlett-Packard Co (HPQ.N), as president. Hurd
resigned in August after a probe into sexual harassment
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)