This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks, Oil Fall as Dollar Recovers

(Updated with commentary, stock prices.)

NEW YORK ( TheStreet) -- Stocks were unable to recover Monday afternoon as Wall Street reacted to a round of bank downgrades and a strengthening dollar.

The Dow Jones Industrial Average lost 104.22 points, or 1.1%, to 9,867.96, while the S&P 500 edged down 12.66 points, or 1.2%, to 1066.94. The Nasdaq gave up 12.62 points, or 0.6%, to 2141.85.

Financials were at the forefront of declines, with the KBW Bank Index losing 4.1% after Rochedale Securities analyst Dick Bove downgraded Fifth Third (FITB - Get Report), US Bancorp (USB - Get Report) and SunTrust (STI). Shares of those banks fell 7.9%, 3.2% and 5.4%, respectively.

Homebuilder stocks were also lower, despite reports that Senate leaders are negotiating to extend an $8,000 tax credit for first-time homebuyers through 2010.

Toll Brothers (TOL), Lennar (LEN) and D R Horton (DHI) lost more than 4% each.

The turn in the broader markets came as the dollar rebounded after making a new 14-month low early Monday.

At the same time, gold gave up $13.60, to $1,042.80 an ounce, while crude oil futures dropped $1.82, to $78.68 a barrel.

"The dollar is having a bit of a balance, and it's just really a continuation of weakness last week," says Ryan Detrick, senior technical strategist at Schaeffer's Investment Research.

"While the move has garnered the market's attention and stands out on a short-term basis, there does not appear to be any practical reasoning behind today's move other than what started as a short-term correction that gained momentum as dollar shorts started to cover their positions resulting in a short squeeze," wrote Robert Pavlik, chief market strategist banyan partners.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FITB $18.31 0.00%
GLW $18.67 0.00%
FTI $30.49 0.00%
ING $12.27 0.00%
MSFT $49.87 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs