NEW YORK (
TheStreet) -- The markets sagged Thursday over persistent concerns about the European debt crisis.
Dow Jones Industrial Average fell 113.96, or 1.05%, to 10,782.95, and the
S&P 500 dropped 14.24, or 1.22%, to 1,157.43. The
Nasdaq sank 30.66, or 1.26%, to 2,394.36.
Gary Kaminsky on
CNBC's "Fast Money" TV show that Wall Street smells a global settlement of the banks that have been suspected of misleading investors about mortgage-backed bond deals. "There will be one settlement and it will be over."
Guy Adami said it's possible to make the argument that the market uncertainty extends beyond the financials to the economic uncertainty in China,
(CSCO) earnings and troublesome retail earnings.
For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."
Tim Seymour said another cloud of uncertainty over the banks is the Dodd's financial reform bill and its vague language.
Technically speaking, Adami said the market has done poorly testing the S&P resistence level of 1,172 and looks as if it is going to roll over again.
Kaminsky said Cisco's cautious outlook about Europe had an impact on the market today.
Seymour said the comments of John Chamber, Cisco's CEO, could be taken both ways. He said the market is taking a negative view of the comments and heading lower.
Chris Whalen, of Institutional Risk Analytics, said the chances of a global settlement in the mortgage-backed securities controversy is a long way off. He said the politicians love this, having finally found an issue that has traction with voters.
He said the doesn't think
will lose in court, but said the rating agency should be worried about the impact of the financial reform overhaul on its business.
He said there are some "righteous" banks that will come out of this episode, including
Bank of Hawaii
With the euro falling again, Brian Kelly told viewers to watch the euro-yen cross rate as an early indicator of where the S&P is going. Seymour said it's a bad sign that the euro is declining when there were so many positive signs coming from Europe today.