US stocks fell again on Friday, ending the biggest weekly decline since November. Banks were among the biggest losers after Lloyds Banking Group said HBOS will report a bigger loss than expected. Stocks had started the session stronger after the government said they would announce a plan next week to prop up the housing sector, but the positivity was short lived and all three major indices finished lower.
The Dow Jones fell 82.35 points to close at 7,850.41 while the S&P 500 slipped 8.35 points to end at 826.84. The Nasdaq lost 7.35 points to finish at 1,534.36.
Wells Fargo, the second biggest US home lender, dropped 6.2% after revising results because of costs tied to securities holdings. JPMorgan Chase caused one of the biggest drags on the Dow declining 3.3% while Bank of America finished 5.1% lower.
Large manufacturers were buoyed by the House of Representatives passing President Obama's $787 billion economic stimulus plan. Boeing climbed 1.6% while United Technologies gained 0.4%.
Retailers went lower after a report showed consumer confidence fell to its lowest level in three months in February. Wal-Mart caused the biggest drag on the Dow, falling 3.3%, while Home Depot slid 3.5%.
US light crude oil for March delivery jumped $3.53 to $37.51 a barrel. Treasury prices fell, raising the yield on the 10 year note to 2.9%. COMEX gold for April delivery slipped $7 to $942.20 an ounce.
The Nikkei fell 29.23 points to close at 7,750.17 this morning. A higher yen troubled exporters while data showing that Japan's economy suffered its biggest fall in over three decades hurt the broader market, although this had been expected.
The Hang Seng declined 98.79 points to close at 13,455.88 this morning. Bank of East Asia, Hong Kong's third biggest bank by assets, lost 4.1% ahead of an earnings announcement due tomorrow.
The FTSE 100 is currently 17.18 points lower at 4,172.41. Legal & General tops the fallers board, down 22%, after Deutsche Bank cut its price target on the stock. A number of insurers follow, Aviva is down 4.5% while Prudential declines 3.7%. Banks continued to slide following Lloyds announcement that HBOS will report a £10 billion loss. Lloyds is off 6% while RBS loses 2%.