US STOCKS-Wall St drops on Portugal bank worry; losses pared

jueves 10 de julio de 2014 12:43 GYT
 

* Portuguese, Italian markets slide, weigh on Europe

* Utilities, telecoms up; 10-yr yield hits lowest since June 2

* Lumber Liquidators tumbles after revised outlook

* Dow off 0.4 pct; S&P 500 down 0.4 pct; Nasdaq off 0.4 pct (Updates to midday)

By Rodrigo Campos

NEW YORK, July 10 (Reuters) - U.S. stocks pulled well off session lows but were still falling on Thursday as concerns about the financial health of Portugal's top listed bank gave investors a reason to cash in recent gains.

With the Dow and the S&P 500 near record highs, the slide in Europe triggered by financial shares quickly translated into broad selling on Wall Street. The S&P 500 briefly lost 1 percent, a daily drop the benchmark has not seen 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. The bank's shares tumbled 17.2 percent. The S&P 500 financial sector index fell 0.8 percent.

Portugal's benchmark stock index fell 4.2 percent and Italy's FTSE MIB slid 1.9 percent. An index of European bank shares dropped 1.7 percent after earlier falling as much as 3.1 percent.   Continuación...