(Refiles to fix spelling of 'concerns' in headline)
* China stocks hit 5-week low on credit tightening woes
* Sen Dodd to unveil revised financial regulation proposal
* Citigroup upgrades Wal-Mart to "buy," shares rise
* Indexes down: Dow 0.4 pct; S&P 0.7 pct; Nasdaq 0.8 pct
* For up-to-the-minute market news, click [STXNEWS/US]
(Updates to midday, changes byline)
By Ryan Vlastelica
NEW YORK, March 15 U.S. stocks fell on Monday
on persistent concerns the Chinese government may tighten
credit, potentially slowing the global economy, and as
investors awaited details of a forthcoming financial regulation
Shanghai's key stock index fell to its lowest close in five
weeks on Monday as investors expect China's central bank to
step up monetary tightening measures in the wake of
higher-than-expected inflation. U.S.-listed shares of China
Finance Online (JRJC.O) fell almost 3 percent.
"There's potential for the China situation to end up
working out in our favor, but right now, there's no consensus
on how this will play out in terms of currency or trade
issues," said Eric Kuby, chief investment officer at North Star
Investment Management Corp in Chicago.
"Until we figure out how this will play out, it will be an
Bank stocks were lower ahead of Senate Banking Committee
Chairman Christopher Dodd's revised financial regulation
proposal expected later on Monday. [ID:nN14160836]
The KBW Banks index .BKX fell 1 percent, and JPMorgan
Chase & Co (JPM.N) fell 1 percent to $42.73.
"The bill could be onerous for institutions engaged in
consumer banking," Kuby said, adding that some of the impact of
the bill was priced into bank shares.
The Dow Jones industrial average .DJI dipped 42.77
points, or 0.42 percent, to 10,579.88. The Standard & Poor's
500 Index .SPX dropped 7.36 points, or 0.67 percent, to
1,142.32. The Nasdaq Composite Index .IXIC fell 19.50 points,
or 0.83 percent, to 2,347.80.
The S&P Energy index .GSPE fell 1.7 percent and was the
worst performer among S&P sectors as crude oil fell 2.3 percent
to $79.34 per barrel on a stronger dollar. Dow component Exxon
Mobil (XOM.N) fell 1.1 percent to $66.09.
Wal-Mart Stores Inc was the top percentage gainers among
Dow components, rising 2.8 percent to $55.38 after Citigroup
upgraded Wal-Mart to "buy," saying it could gain market share
in its supermarket division without sacrificing margins.
Earlier on Monday, a gauge of manufacturing in New York
state slipped in March, though the decline was slightly lower
than expected. A separate report showed U.S. industrial output
edged up 0.1 percent in February, likely restrained by severe
winter weather. [ID:nN15167585]
Google Inc (GOOG.O) fell 3.7 percent to $557.88 after it
said it remained in talks with the Chinese government about
censorship of its Chinese-language search portal despite
mounting signs the company could soon shut the site. Chinese
search firm Baidu Inc (BIDU.O) surged 7 percent to $589.10.
(Editing by Padraic Cassidy)