US STOCKS-Wall St slides as Portugal bank worry triggers selloff

jueves 10 de julio de 2014 10:36 GYT

* Portuguese, Italian markets slide, weigh on Europe

* U.S. jobless claims better than expected

* Lumber Liquidators tumbles after revised outlook

* Indexes off: Dow 0.7 pct, S&P 0.7 pct, Nasdaq 0.9 pct (Updates prices, adds comment)

By Rodrigo Campos

NEW YORK, July 10 (Reuters) - U.S. stocks fell on Thursday after the health of Portugal's top listed bank was questioned, bringing back to markets the specter of a weakened Europe.

With U.S. stocks near record highs, the slide in Europe translated into broad selling on Wall Street. Many market participants have called for a pullback, with the steady S&P 500 yet to see a daily decline of 1 percent or more since April 10.

Espirito Santo Financial Group, the largest shareholder in Portugal's Banco Espirito Santo, suspended trading in its shares and bonds, citing "material difficulties" at parent company ESI. Shares of the bank fell 17.2 percent. The S&P 500 financial sector fell 1.3 percent.

Portugal's benchmark stock index fell 3.8 percent and Italy's FTSE MIB fell 2 percent. An index of European bank shares was down 1.9 percent.   Continuación...