(Corrects first paragraph to show Bank of America weighed on
S&P 500, not Dow)
* Facebook and Amazon.com lead Nasdaq's losses
* Pfizer works on next move in takeover bid for Astrazeneca
* Bank of America down after suspending dividend increase,
* Dow up 0.1 pct; S&P 500 down 0.2 pct; Nasdaq down 0.7 pct
By Caroline Valetkevitch
NEW YORK, April 28 The Nasdaq tumbled on Monday,
led by a selloff in Facebook and Amazon.com, as
Bank of America's suspension of a planned dividend increase
weighed on the S&P 500.
The three major U.S. stock indexes lost ground after
Reuters, citing sources, reported that European Central Bank
President Mario Draghi sees quantitative easing as still a ways
The S&P 500 financial index fell 1 percent.
The S&P consumer discretionary index, which
includes Amazon, dropped 0.8 percent.
Amazon.com lost 3.1 percent to $294.74, extending Friday's
sharp decline a day after its earnings report. Facebook fell 3.2
percent to $55.88.
High-growth stocks such as those have been battered in
recent weeks as investors have pulled out of the tech and
"The rest of the market caught up with what's going on in
the Nasdaq," said Michael James, managing director of equity
trading at Wedbush Securities in Los Angeles. "What's causing
it? I think it's just momentum feeding on itself. Downward price
action is feeding on itself, and it's bringing out more
Bank of America shares tumbled 6.8 percent to $14.87 after
the company said it will suspend a planned increase in its
quarterly dividend as well as its latest stock-buyback program
because it miscalculated a measure of the capital on its books.
Chinese Internet stocks fell after China's government
ordered the removal of four U.S. television shows, including
"The Big Bang Theory," from video websites during the weekend.
The U.S.-listed shares of Baidu declined 7.5 percent to
Earlier in the session, stocks hit session highs during a
flurry of merger and acquisition activity in the pharmaceutical
The Dow Jones industrial average rose 13.39 points
or 0.08 percent, to 16,374.85. The S&P 500 lost 3.33
points or 0.18 percent, to 1,860.07. The Nasdaq Composite
dropped 27.922 points or 0.69 percent, to 4,047.64,
after falling more than 1 percent in afternoon trading.
Shares of Pfizer Inc, a Dow component, gained 3.6
percent to $31.85 after the U.S. drugmaker was said to be
working on its next move in a potential $100 billion bid to take
over Britain's AstraZeneca Plc, after two earlier bids
were rejected. Pfizer's gains helped support the
In another M&A deal, Forest Laboratories Inc said it
would buy Furiex Pharmaceuticals Inc for up to $1.46
billion, including milestone payments to add Furiex's promising
treatment for irritable bowel syndrome to Forest's portfolio of
Furiex Pharmaceuticals shares surged 28.5 percent to $103.01
while Forest Laboratories shares shed 0.9 percent to $89.02.
(Additional reporting by Herbert Lash; Editing by Bernadette
Baum and Jan Paschal)