Stocks fell 1 percent at the open on Tuesday as a report that Bank of America Corp and Citigroup Inc may need more capital revived fears about the stability of the struggling financial sector.

New Zealand, Israel confirm cases of swine flu.

The Dow Jones industrial average <.DJI> dropped 71.93 points, or 0.90 percent, to 7,953.07. The Standard & Poor's 500 Index <.SPX> fell 8.90 points, or 1.04 percent, to 848.61. The Nasdaq Composite Index <.IXIC> lost 14.52 points, or 0.86 percent, to 1,664.89.

(Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)