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Disney shares slide, top pct loser on S&P 500
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KBW Regional Banking index down
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Energy shares lower
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Dow down 0.7%, S&P 500 off 0.2%, Nasdaq up 0.3%
(Updates prices throughout, adds quote, adds NEW YORK dateline)
By Caroline Valetkevitch
NEW YORK May 11 (Reuters) - The Dow and the S&P 500 fell
on Thursday, dragged down by Walt Disney Co which
reported weaker subscriber growth and declines in regional bank
and energy stocks.
Lifting the Nasdaq, shares of Alphabet Inc rose
4.5% a day after Google rolled out more artificial intelligence
products to take on competition from Microsoft Corp .
Microsoft shares fell 0.8% and were among the biggest negative
influences on the S&P 500 and Nasdaq.
PacWest Bancorp shares dropped 21% after it
reported a drop in deposits last week and pledged an additional
$5.1 billion of its loans to the central bank.
Other regional bank shares fell as well as the news renewed
worries about the industry's health following the recent
collapse of three regional lenders.
The KBW Regional Banking Index was down 1.8%. "I don't think you can say that it is a widespread issue. It is still very much bank by bank. But there's very likely to be more consolidation and more headaches for regional bank investors," said Oliver Pursche, senior vice president and advisor at Wealthspire Advisors in Westport, Connecticut.
Walt Disney shares slid 8.8%, a day after the company reported its quarterly results. The energy index fell 1.5% along with declines in oil prices. The Dow Jones Industrial Average fell 232.49 points, or 0.69%, to 33,298.84; the S&P 500 lost 6.22 points, or 0.15%, at 4,131.42; and the Nasdaq Composite added 38.63 points, or 0.31%, at 12,345.07. The U.S. Federal Deposit Insurance Corporation said around 113 of the country's largest lenders will bear the cost of replenishing the $16 billion in coverage the agency has forked out for the crisis.
Investors also worried about the recent standoff in Washington over raising the U.S. debt ceiling. Declining issues outnumbered advancers on the NYSE by a 2.50-to-1 ratio; on Nasdaq, a 1.68-to-1 ratio favored decliners. The S&P 500 posted 4 new 52-week highs and 13 new lows; the Nasdaq Composite recorded 54 new highs and 181 new lows.
(Additional reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru; Editing by Saumyadeb Chakrabarty, Anil D'Silva and Richard Chang)
