Major stock indexes fell on Monday amid lingering worries that problems plaguing the credit markets have not been eliminated yet.
Among the biggest company reports of the day was banking giant Citigroup, which reported a 57 percent drop in profit for its third fiscal quarter. Shares of the biggest U.S. bank fell 3.4 percent to $46.24 after the company said it expects that mortgage delinquencies may continue to worsen and that it doesnâ€™t anticipate a quick recovery from the credit crunch.
Compounding concerns was a move by big financial institutions to bail themselves out from bad mortgage loans in the subprime market. Citi was one of three large U.S. banks, including Bank of America and J.P. Morgan Chase among other financial firms, which said that they will create an $80 billion fund to prevent bonds related to subprime mortgages and other debt from being sold in the open market at very low prices.
The Dow Industrial Average dropped 108.28 to end at 13,984.80. The Standard & Poorâ€™s 500 index fell 13.09 to finish at 1,548,71, while the technology heavy Nasdaq Composite Index declined 25.63 points to 2,780.05.