Wall Street falls on global credit concerns

In further fallout from the subprime mortgage losses, Merrill Lynch & Co Inc said its subprime lending unit, First Franklin Financial Corp, is cutting jobs. Merrill's shares fell 2.4 percent to $72.79.

Shares of General Motors Corp rose 1.7 percent to $34.81. Negotiators for the United Auto Workers and GM agreed to a break in contract talks after a 16-hour bargaining session that raised expectations the two sides were near an agreement.

JPMorgan Chase shares fell 1.2 percent to $45 and Citigroup fell 1.5 percent to $45.96.

Major investment banks Lehman Brothers, Morgan Stanley, Bear Stearns and Goldman Sachs, will be closely watched ahead of reporting earnings this week that are expected to have taken a big hit from turmoil in the mortgage markets.

The four companies' shares all fell between 1.9 percent and 2.6 percent.