* Bank of America down after suspending dividend increase,buyback plan
* Dow up 0.1 pct; S&P 500 down 0.2 pct; Nasdaq down 0.7 pct
By Caroline Valetkevitch
NEW YORK (Frankfurt: HX6.F - news) , April 28 (Reuters) - The Nasdaq tumbled on Monday,led by a selloff in Facebook and Amazon.com, asBank of America's suspension of a planned dividend increaseweighed on the S&P 500.
The three major U.S. stock indexes lost ground afterReuters, citing sources, reported that European Central BankPresident Mario Draghi sees quantitative easing as still a waysaway.
The S&P 500 financial index fell 1 percent.
The S&P consumer discretionary index, whichincludes Amazon, dropped 0.8 percent.
Amazon.com lost 3.1 percent to $294.74, extending Friday'ssharp decline a day after its earnings report. Facebook fell 3.2percent to $55.88.
High-growth stocks such as those have been battered inrecent weeks as investors have pulled out of the tech andbiotech space.
"The rest of the market caught up with what's going on inthe Nasdaq," said Michael James, managing director of equitytrading at Wedbush Securities in Los Angeles. "What's causingit? I think it's just momentum feeding on itself. Downward priceaction is feeding on itself, and it's bringing out moresellers."
Bank of America shares tumbled 6.8 percent to $14.87 afterthe company said it will suspend a planned increase in itsquarterly dividend as well as its latest stock-buyback programbecause it miscalculated a measure of the capital on its books.
Chinese Internet stocks fell after China's governmentordered the removal of four U.S. television shows, including"The Big Bang Theory," from video websites during the weekend.The U.S.-listed shares of Baidu (Xetra: B1C.DE - news) declined 7.5 percent to$150.67.
Earlier in the session, stocks hit session highs during aflurry of merger and acquisition activity in the pharmaceuticalsector.
The Dow Jones industrial average rose 13.39 pointsor 0.08 percent, to 16,374.85. The S&P 500 lost 3.33points or 0.18 percent, to 1,860.07. The Nasdaq Composite dropped 27.922 points or 0.69 percent, to 4,047.64,after falling more than 1 percent in afternoon trading.
Shares of Pfizer Inc, a Dow component, gained 3.6percent to $31.85 after the U.S. drugmaker was said to beworking on its next move in a potential $100 billion bid to takeover Britain's AstraZeneca Plc, after two earlier bidswere rejected. Pfizer's gains helped support theDow.
In another M&A deal, Forest Laboratories Inc (NYSE: FRX - news) said itwould buy Furiex Pharmaceuticals Inc (NasdaqGS: FURX - news) for up to $1.46billion, including milestone payments to add Furiex's promisingtreatment for irritable bowel syndrome to Forest's portfolio ofgastrointestinal drugs.
Furiex Pharmaceuticals shares surged 28.5 percent to $103.01while Forest Laboratories shares shed 0.9 percent to $89.02. (Additional reporting by Herbert Lash; Editing by BernadetteBaum and Jan Paschal)
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