NEW YORK ? Stocks slipped on Wall Street Monday as a jump in Italy's borrowing costs reminded investors of how much work remains to be done to contain Europe's debt woes. The euro and European markets also fell.
The Dow Jones industrial average fell 81 points, or 0.7 percent, to 12,072, as 2 p.m. Eastern. Bank stocks sank the most. JPMorgan Chase & Co. fell 2.6 percent and Bank of America Corp. 2.3 percent, the largest drops among the 30 large companies in the Dow.
Major indexes closed higher last week as it appeared Greece and Italy were making steps toward getting their debt troubles under control. New governments are taking over both countries, which are at the center of the crisis.
Worrying signs about Europe reemerged Monday. Italy's largest bank, Unicredit, reported a $14.4 billion quarterly loss. Also, the Italian government raised $4.1 billion in a sale of five-year bonds, but the 6.29 percent interest rate was the highest since 1997. Italy paid a much lower rate of 5.32 percent at a similar auction last month. The increase is a sign that investors are still worried about Italy's ability to service its debt and cut back its bloated budget.
"The problems these countries are dealing with go well beyond their prime ministers," said Dan Greenhaus, chief global strategist at the brokerage BTIG. "Italy didn't get where it is in five minutes. And it's not going to get out of where it is in five minutes. This is going to take months."
The S&P 500 index fell 11 points, or 0.8 percent, to 1,252. The Nasdaq composite fell 16, or 0.6 percent, to 2,663.
Germany's DAX fell 1.2 percent and France's CAC-40 fell 1.3 percent. The euro fell 1 percent against the dollar.
Boeing Co. gained 2 percent. The airline Emirates placed an order for 50 777s, one of the largest orders ever placed with the aircraft maker. Boeing also picked up a new customer, Oman Air, which ordered six 787s.
J.C. Penney Co. fell 1 percent after reporting a quarterly loss. The department store operator said its results were weighed down by restructuring costs. The company also lowered its earnings outlook for the rest of the year.
Lowe's Cos. rose 2 percent after the country's second-largest home-improvement retailer reported revenue and earnings that beat analysts' expectations. IBM rose 1 percent after Warren Buffett said his firm has built up 5 percent stake in the company.
The Dow has made gains in six of the past 7 weeks, and is still up 0.9 percent for the month. The S&P 500 and the Nasdaq are slightly lower.
No major economic reports are coming out Monday.
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