U.S. stocks declined for the first time in five days on Monday after Bank of America Corp. and National City Corp. reported earnings that fell short of expectations and added to concern that banks are being hard hit by the subprime mortgage crisis.

Bank of America, the second-largest U.S. bank, dropped after bad loans caused first-quarter profit to trail analysts' estimates. National City fell to a 17-year low as Ohio's biggest bank was forced to cut its dividend and sell stock at a 40 percent discount to last week's closing price. Wall Street rallied Friday, on upbeat earnings from Google Inc. and write-downs from Citigroup Inc. that weren't as bad as some had feared.

The Standard & Poor's 500 Index lost 8.53 points, or 0.6 percent, to 1,381.8 at 11:20 a.m. in New York. The Dow Jones Industrial Average retreated 79.95, or 0.6 percent, to 12,769.41. The Nasdaq Composite Index decreased 10.1, or 0.4 percent, to 2,392.87. Three stocks declined for every one that rose on the New York Stock Exchange.

Bank of America Corp. reported a first-quarter earnings drop of 77 percent to $1.21 billion, or 23 cents a share, as its provision for credit losses climbed and it posted $2.72 billion in net charge-offs.

In the health care sector, Merck & Co. said first-quarter net income soared 94 percent to $3.3 billion, or $1.52 a share. The third-largest US drugmaker posted income of 89 cents a share, topping the 86-cent consensus.

Also in health care, Eli Lilly & Co said first-quarter net income nearly doubled to $1.06 billion, or 97 cents a share, up from $508.7 million, or 47 cents, earned a year earlier, citing increased sales of Cialis and Cymbalta.

Mattel Inc. , the world's largest toymaker, dropped $1.57 to $20.21. The company posted its first quarterly loss in almost three years on higher manufacturing costs in China. Analysts had expected a profit.