NEW YORK (Reuters) – Stocks fell early Wednesday on worries the Greece debt crisis may escalate and after a negative reading on New York State manufacturing underscored the headwinds facing the economy.
Pressuring financial stocks, Moody's said it may cut the credit ratings of French banks, citing exposure to Greek debt. The banks have $65 billion in overall net exposure, versus $40 billion for Germany and $41 billion for the United States, according to the Bank for International Settlements.
The KBW index of major U.S. bank stocks (.BKX) fell 0.7 percent, while Bank of America Corp (BAC.N) dropped 1.8 percent to $10.61.
The New York Federal Reserve's Empire State manufacturing index, an early indicator of U.S. factory conditions, unexpectedly contracted in June, falling below zero for the first time since November.
via news.yahoo.com
