U.S. stocks slide with sequestration in view Worr

U.S. stocks slide with sequestration in view
Worries over outcome of Italian elections pushes euro lower

NEW YORK (MarketWatch) — U.S. stocks fell on Monday, with the S&P 500 extending losses after its first weekly drop this year, as political issues, both domestically and abroad, weighed.

Equities declined as investors looked to the March 1 deadline for U.S. lawmakers to reach a deal to avert automatic spending cuts, known as sequestration, as well as the results from a general election in Italy.
“The market started off strong today, but is starting to get a little worried. If the sequestration happens, and the big cuts are in place, I am pretty sure the market is going to pull back, maybe 3% to 5%, then go to all-time highs,” said Randy Frederick, managing director of active trading and derivatives at Charles Schwab.

After an 81-point rise, the Dow Jones Industrial Average (DJI JIA) fell as much as 107 points, and was lately off 70.14 points, or 0.5%, at 13,930.43.

Just eight of the Dow’s 30 components gained, with McDonald’s Corp. (NYSE:MCD) the strongest performer and Bank of America Corp. (NYSE:BAC) hardest hit.

The S&P 500 index (SNC:SPX) fell 11.73 points, or 0.8%, to 1,503.93, with financial companies the worst performing of its 10 sectors.

The Nasdaq Composite index (NASDAQ:COMP) shed 15.71 points, or 0.5%, to 3,146.46. http://www.marketwatch.com/story/us-stocks-re...=afterbell