Stocks Fall on European Bank Concerns  09/07 09:24

   Fresh worries about European banks sent stocks lower early Tuesday. Treasury 
prices rose as investors sought out safe places to park their money.

   NEW YORK (AP) -- Fresh worries about European banks sent stocks lower early 
Tuesday. Treasury prices rose as investors sought out safe places to park their 
money.

   The Dow Jones industrial average fell nearly 80 points, getting the 
holiday-shortened week off to a weak start.

   European stocks fell following news reports that banks there may have more 
risky government debt on their books than was disclosed during "stress tests" 
earlier this year. That could mean fees from regulators and more 
capital-raising by the banks to bolster their balance sheets.

   Shares of European banks mostly fell and the dollar rose against the euro.

   The reports renewed worries about Europe's government debt, which had flared 
up earlier this year following a fiscal crisis in Greece that spread to other 
weak European economies including Portugal and helped bring stock prices down 
worldwide.

   With little economic news in the U.S. following the Labor Day weekend, 
traders were focused on developments overseas. Several reports this week could 
shed more light on the U.S. economy including the "beige book" report from the 
Federal Reserve coming out on Wednesday and weekly unemployment numbers due out 
on Thursday.

   The Dow fell 77.95, or 0.8 percent, to 10,369.22 in morning trading.

   The Standard & Poor's 500 index fell 9.90, or 0.9 percent, to 1,094.61, 
while the Nasdaq composite index fell 14.49, or 0.7 percent, to 2,219.26.

   About three stocks fell for every one that rose on the New York Stock 
Exchange, where volume came to 129.6 million shares.

   The yield on the 10-year Treasury note, which moves opposite its price, fell 
to 2.65 percent from 2.71 percent late Friday. Its yield is often used as a 
gauge to set interest rates on mortgages and other consumer loans.

   Shares of Swiss bank UBS AG dropped 37 cents, or 2.1 percent, to $17.67. 
Spanish bank Banco Santander SA fell 32 cents, or 2.5 percent, to $12.36.

   Barclays PLC fell $1.06, or 5.2 percent, to $19.22. The British bank also 
announced Robert E. Diamond Jr., who built the company's global investment 
bank, will take over as CEO next year.

   In other corporate news, Oracle Corp. named former Hewlett-Packard Co. CEO 
Mark Hurd co-president. The two companies had been longtime partners, but are 
now competitors in the computer server market. Oracle shares jumped $1.49, or 
6.5 percent, to $24.41. Hewlett-Packard fell 35 cents to $39.99.

   Britain's FTSE 100 fell 0.6 percent, Germany's DAX index dropped 0.7 
percent, and France's CAC-40 fell 1.2 percent.


(KM)