NEW YORK (AP) — Stocks slipped on Wall Street Monday as a jump in Italy’s borrowing costs reminded investors of how much work remains to be done to contain Europe’s debt woes. European markets also fell and the euro weakened against the dollar.
The Dow Jones industrial average fell 109 points, or 0.9 percent, to 12,044, as of 3 p.m. Eastern. Bank stocks sank the most. JPMorgan Chase & Co. fell 3 percent and Bank of America Corp. 2.7 percent, the largest drops among the 30 large companies in the Dow.
Major indexes closed higher last week as it appeared Greece and Italy were making steps toward getting their debt troubles under control. New governments are taking over in both countries, which are at the center of the crisis.
Worrying signs about Europe reemerged Monday. Italy’s largest bank, Unicredit, reported a $14.4 billion quarterly loss. The Italian government also raised $4.1 billion in a sale of five-year bonds, but the 6.29 percent interest rate was the highest since 1997. Italy paid a much lower rate of 5.32 percent at a similar auction last month. The increase is a sign that banks and other bond buyers remain concerned about Italy’s ability to pay its debts.
“The problems these countries are dealing with go well beyond their prime ministers,” said Dan Greenhaus, chief global strategist at the brokerage BTIG. “Italy didn’t get where it is in five minutes. And it’s not going to get out of where it is in five minutes. This is going to take months.”
The S&P 500 index fell 15 points, or 1.2 percent, to 1,249. The Nasdaq composite fell 25, or 0.9 percent, to 2,653.
Germany’s DAX closed down 1.2 percent and France’s CAC-40 1.3 percent. The euro fell 1 percent against the dollar.
Stocks have rallied since early October on encouraging signs of progress in containing Europe’s debt crisis, stronger U.S. corporate earnings and better news on the U.S. economy, which allayed fears that another recession could be on the way. The S&P 500 has gained 13.7 percent since Oct. 3, when it hit its lowest point of the year.
That surge has drawn big investors back into the stock market and opened the door to a long line of companies waiting to go public. The flow of money from institutions into U.S. stock funds hit $7.3 billion last week, the third largest tally this year, according to fund tracker EPFR Global.
Angie’s List, a customer review website, Delphi Automotive and seven other companies are scheduled to go public this week. If they all wind up going through, it would be the biggest week for IPOs in four years, according to Renaissance Capital, an IPO advisory firm.
In corporate news, the airline Emirates placed an order for 50 Boeing 777s, one of the largest orders ever placed with the aircraft maker. Boeing also picked up a new customer, Oman Air, which ordered six 787s. Boeing Co. gained 1.4 percent.
J.C. Penney Co. fell 2 percent after reporting a quarterly loss. The department store operator said its results were weighed down by restructuring costs. The company also lowered its earnings outlook for the rest of the year.
Lowe’s Cos. gained 1.6 percent after the country’s second-largest home-improvement retailer reported revenue and earnings that beat analysts’ expectations.
The Dow has made gains in six of the past 7 weeks, and is still up 0.7 percent for the month. The S&P 500 and the Nasdaq are slightly lower.
No major economic reports came out Monday.