U.S. stocks fell on Monday as investors booked profits after last week's run-up, while analyst concerns about slowing wireless growth in 2009 weighed on large telecom and cable companies according to Reuters. Dow components Verizon Communications Inc and AT&T stumbled after Bernstein Research downgraded both companies, saying it expected slower wireless growth and "relatively worse" wireline telecom performance in 2009. Financial stocks also slumped after Deutsche Bank cut its earnings forecast on 16 large commercial banks, including JPMorgan Chase & Co, another Dow component. "I don't know how much is left in this market," said Stephen Massocca, co-chief executive at Pacific Growth Equities in San Francisco, regarding the recent gains. "But I think we're due for a little rest." The Dow Jones industrial average was down 91.27 points, or 1.01 percent, to 8,943.42. The Standard & Poor's 500 Index fell 4.34 points, or 0.47 percent, to 927.46. The Nasdaq Composite Index shed 7.20 points, or 0.44 percent, to 1,625.01. The S&P index of telecom stocks fell 5.1 percent after Bernstein Research cut its ratings and price targets for AT&T and Verizon. Verizon fell 7.8 percent to $31.93, while AT&T lost 4.6 percent to $28.07. Financial stocks fell after Deutsche Bank said loan losses for U.S. commercial banks could rise 3 percent by the end of 2010, hurt by a larger percentage of bad loans, greater consumer leverage and faster problem recognition by banks. That compares to loan losses of 1.5 percent in the third quarter of 2008. The KBW Banks Index fell 2.1 percent, while the S&P index of financial shares shed 1.2 percent. JPMorgan lost 4.5 percent to $29.95 as one of the top drags on the Dow. Homebuilder shares jumped after the U.S. Commerce Department released a report on U.S. construction spending that showed building at the end of the 2008 was stronger than Wall Street had expected. The Dow Jones U.S. Homebuilders index was up 6.8 percent, led by Pulte Homes, which was up 8.4 percent to $12.11. U.S. stocks turned briefly positive and the Dow cut losses on Monday after General Motors reported December sales that were better than expectations. Dow component General Motors Corp rose 4.4 percent to $3.81 after it said December U.S. sales fell 31 percent. Ford shares also rose after it reported December sales, gaining 4.5 percent to $2.57. Energy stocks rose as oil prices jumped nearly 4 percent in New York on supply fears on Israel's deepening incursion into Gaza and the dispute between Russia and Ukraine over natural gas. The S&P index of energy shares was up 2.8 percent, helped by a 1.4 percent gain in Chevron. On the Nasdaq, Apple Inc jumped 5.6 percent to $95.75 after Chief Executive Steve Jobs dispelled fears about his health.
