TODAY'S MARKETSNOVEMBER 22, 2010, 1:07 P.M. ET
Bank, Energy Stocks Drag on Market
By DONNA KARDOS YESALAVICH
NEW YORK—Stocks sank as financials dropped after new details of a widespread insider-trading case emerged and worries over the stability of the euro zone following Ireland's agreement to a bailout weighed on the market.
The Dow Jones Industrial Average dropped 135 points, or 1.2%, to 11068, in early afternoon trading, falling into negative territory for the month. The Dow is down about 0.5% for November.
All 30 of its components were down, led by Bank of America,,off 3.4%, and J.P. Morgan Chase, down 2.9%.
The financial sector also weighed on the Standard & Poor's 500 index, which shed 1.1% to 1186.
Bank stocks fell after The Wall Street Journal reported that Federal Bureau of Investigation agents raided the Connecticut offices of two hedge funds, Diamondback Capital Management LLC and Level Global Investors LP, amid a far-reaching insider-trading investigation.
Investors said they were bracing for financials to take a hit as more details of the investigation surface.
"It is the brokerage and the investment bankers that are going to be the most likely targets of these investigations," said Robert Phipps, a director at Per Stirling Capital Management.
Stocks were also pulled down by continued concerns over government debt in the euro zone despite an international agreement to provide Ireland with a financial-assistance package whose size is as yet unknown.
Energy stocks tumbled as the price of crude oil fell below $81 a barrel. Halliburton declined 3.7%, while El Paso dropped 3.6% and National Oilwell Varco lost 3.3%.
Markets Hub: Looking for the Next Domino
3:26
Stocks are down in Europe and the US, and the euro is falling as Ireland's preliminary agreement on a bailout has only focused the markets on the next domino to fall, with many pointing to Portugal. Kathleen Madigan, Brad Davis and Paul Vigna report.
Market Data Center
Most Actives | Gainers | Losers
New Highs and Lows | Money Flows
Intraday Futures | Currencies
Data: Overview | Treasurys | Forex | Crude
The U.S. Dollar Index, which tracks the U.S. currency against a basket of six others, rose 0.4%. Treasurys were mixed, with the two-year note flat, while higher demand for the 10-year note pushed its yield down to 2.82%. Gold futures rose.
The Nasdaq Composite fell less sharply than other major indexes, sliding 0.6% to 2502. The index's losses were checked by a 6.5% jump in Novell. An investor group reached a deal to acquire Novell for about $2.2 billion, ending an eight-month takeover battle for the software company.
Shares of Tyson Foods rose 3.8% after the meat packer rebounded from a prior-year loss, posting earnings that topped analysts' estimates.
Hewlett-Packard edged down 0.4% ahead of the company's quarterly earnings report, due after the close.
Write to Donna Kardos Yesalavich at
donna.yesalavich@dowjones.com