* Investors worry about Chinese credit-tightening
* Sen Dodd to unveil revised financial regulation proposal
* Wal-Mart rises after Citigroup upgrade
* Indexes down: Dow 0.2 pct; S&P 0.6 pct; Nasdaq 0.8 pct
* For up-to-the-minute market news, click [STXNEWS/US]
(Updates to early afternoon)
By Ryan Vlastelica
NEW YORK, March 15 U.S. stocks fell on Monday
as investors worried the Chinese government may tighten credit,
potentially slowing the global economy, and waited for a
revised financial regulation bill in the Senate.
Shanghai's key stock index fell to its lowest close in five
weeks on Monday on expectations China's central bank would step
up monetary tightening measures after news of
U.S.-listed shares of China Finance Online (JRJC.O) fell
almost 3 percent. On Sunday Chinese Premier Wen Jiabao said it
would be difficult for China to promote fast growth and "...
manage inflation expectations all at the same time." For
details, see [ID:nTOE62D001].
"That China is making these moves is a sign that the
economy could be stronger, but in the short-term there are
concerns that we're not yet on a firm enough footing to stand
this," said John Massey, portfolio manager at SunAmerica Asset
Management in Jersey City, New Jersey.
Banks were lower before Senate Banking Committee Chairman
Christopher Dodd's release of a proposed financial regulation
overhaul bill expected later on Monday. [ID:nN14160836]
The KBW Banks index .BKX fell 0.9 percent while Dow
component JPMorgan Chase & Co (JPM.N) fell 0.8 percent to
"The bill could be a little more restrictive than
previously thought if parts of the Volcker rule are in there,"
Massey said. "Right now investors are waiting to see exactly
how much this could impact everyone."
The Dow Jones industrial average .DJI dipped 25.39
points, or 0.23 percent, to 10,600.89. The Standard & Poor's
500 Index .SPX dropped 6.33 points, or 0.55 percent, to
1,143.89. The Nasdaq Composite Index .IXIC fell 18.05 points,
or 0.76 percent, to 2,349.30.
The S&P Energy index .GSPE fell 1.6 percent and was the
worst performer among S&P sectors as crude oil fell 2.2 percent
to $79.43 per barrel on a stronger dollar. Dow component Exxon
Mobil (XOM.N) fell 1.1 percent to $66.08.
Wal-Mart Stores Inc (WMT.N) was the top percentage gainer
among Dow components, rising 2.7 percent to $55.36 after
Citigroup upgraded Wal-Mart, 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]
Weighing on the Nasdaq, 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
5.9 percent to $582.95. [ID:nTOE62E03R]
(Editing by Kenneth Barry)