(Refiles to fix capitalization of DiLiddo and VectorVest in
6th paragraph)
* Oil futures rise nearly $4 a barrel
* Financial shares tumble on credit concerns
* Liz Claiborne outlook disappoints
* Import prices jump, retail sales off in July
(Updates to early afternoon)
By Deepa Seetharaman
NEW YORK, Aug 13 (Reuters) - U.S. stocks slid on Wednesday
as financial shares sold off for a second straight day on fresh
concerns about the widening impact of the mortgage crisis on
the U.S. economy's outlook.
A rebound in oil prices added to investor concerns, along
with Deere & Co's <DE.N> profit shortfall and disappointing
retail company outlooks.
Investors sold off shares of major banks and other
financial firms, a day after JPMorgan Chase & Co <JPM.N> said
it had racked up an additional $1.5 billion in write-downs
stemming from soured mortgage-related investments.
Shares of Bank of America <BAC.N>, the No. 2 U.S. bank,
were a top drag on the Dow and S&P 500, falling more than 6
percent. The casualties included Citigroup <C.N>, the largest
U.S. bank, down nearly 3 percent, while JP Morgan shares
declined more than 2 percent.
The S&P financial index <.GSPF> was down 2.6 percent.
Another standout decliner was General Motors <GM.N>, down
almost 7 percent, after credit ratings agency Moody's Investors
Service cut its ratings on the automaker deeper into junk.
"The reality of the credit crisis isn't over," said Bart
DiLiddo, chairman of VectorVest Inc, a financial research firm
in Akron, Ohio. "The housing market hasn't bottomed yet. These
banks aren't going to become real money-makers for a while."
The Dow Jones industrial average <> fell 155.35 points,
or 1.33 percent, to 11,487.12. The Standard & Poor's 500 Index
<.SPX> declined 10.63 points, or 0.82 percent, to 1,278.96. The
Nasdaq Composite Index <> slid 20.78 points, or 0.85
percent, to 2,409.83.
Shares of Bank of America fell to $29.23 and Citigroup
shares declined to $17.98 on the New York Stock Exchange.
JPMorgan shares dropped to $37.09. The S&P financial index was
on track for its worst 2-day drop in 6 years.
Shares of Deere, whose results reflected the impact of the
U.S. housing slump, slipped 5.6 percent to $65.45 on the NYSE
and dragged along other big manufacturers including Caterpillar
Inc <CAT.N>, down almost 4 percent at $69.05.
Shares of GM declined to $10.25.
Technology shares also fell on concerns that the economic
slowdown will hurt business and consumer spending.
Research In Motion <RIMM.O>, the BlackBerry maker, was the
top drag on the Nasdaq, falling 1.2 percent to $126.73,
offsetting a rise in shares of Apple Inc <AAPL.O> following
news it will expand sales of its iPhone in an alliance with top
U.S. electronics chain Best Buy <BBY.N>.
Apple shares were up 0.9 percent at $178.39 on Nasdaq.
Women's apparel retailer Liz Claiborne Inc <LIZ.N>, home to
the Juicy Couture and Kate Spade store chains, cut its 2008
profit forecast, citing economic concerns. Its outlook
overshadowed a stronger-than-expected quarterly profit, sending
the stock down nearly 14 percent at $12.87. For more
see[].
U.S. crude oil futures <CLc1> jumped $4 to $117 a barrel
after weekly government data showed an unexpectedly large
decline in crude oils stocks. Wednesday's economic reports
showed a stronger-than-expected rise in July import prices, and
a drop in retail sales last month, albeit in line with
expectations. [].
(Editing by James Dalgleish)
