U.S. Stocks Close Lower as Financial Woes Continue

U.S. stocks on Monday closed lower after investors received evidence of the ailing financial sector from Wachovia Corp.

At the close, the Dow Jones Industrial Average was down 23.36 points at 12,302.06. The S&P 500 index dropped 4.51 points to 1, 328.32, while the Nasdaq Composite lost 14.42 points to 2,275.82.

The shares of Wachovia Corp, the fourth largest banking chain in the United States based on total assets, fell 10 percent on Monday after the firm reported a larger than expected loss and said it will sell about 7 billion dollars of preferred shares and cut its dividend to boost capital levels.

The firm posted a 350 million dollars first-quarter net loss and a higher loan-loss provision.

Source: CRIEnglish.com