Stocks fell on Monday as a statement from President Barack Obama fell short of addressing worries the recovery is faltering, while investors looked ahead with caution to important economic data coming this week.
Obama said he had discussed additional steps to help the recovery with his advisers, but the speech did not contain any concrete measures, and stocks, already down, fell further.
Investors were also hesitant ahead of closely watched data on manufacturing, services and August non-farm payrolls due later in the week, which are expected to confirm the economy is continuing to slow.
Bank stocks took the brunt of selling. Bank of America
Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia said investors had been hoping Obama would address plans for job creation and attempt to instill confidence in the beleaguered consumer.
We really didn't hear anything new on the former and didn't hear any of the latter, he said.
The Dow Jones industrial average <.DJI> was down 91.12 points, or 0.90 percent, at 10,059.53. The Standard & Poor's 500 Index <.SPX> was down 10.06 points, or 0.94 percent, at 1,054.53. The Nasdaq Composite Index <.IXIC> was down 22.14 points, or 1.03 percent, at 2,131.49.
Bank of America fell to $12.35, while Citigroup fell to $3.70.
In economic news, consumer spending rose at the strongest pace in four months in July, but the 0.2 percent gain in personal incomes reported by the government on Monday was smaller than forecast.
(Reporting by Edward Krudy; Editing by Kenneth Barry)