Weak retail, debt crisis weigh on stocks

Markets opened mixed on Wall Street Monday, then fell slightly, weighed down by U.S. retailers' reports of lower results and by the European debt crisis.

J.C. Penney Co. fell 1 percent after reporting a quarterly loss that reflected restructuring costs. It lowered its earnings outlook for the rest of the year.

Morgan Stanley and Citigroup Inc. fell at least 2.6 percent as European lenders sank. Bank of America Corp. slid 2 percent after selling most of its stake China Construction Bank Corp. to boost capital, Bloomberg News reported.

Boeing Co. was up 2.6 percent after winning its biggest civil jet order: six 787s for Oman Air. IBM shares rose 0.8 percent as Warren Buffett told CNBC his company, Berkshire Hathaway, bought a 5.5 percent stake.

At the close, the Dow Jones industrial average was down 74.70 points, or 0.61 percent, to 12,078.98. The Standard & Poor's 500 index ended off 12.07 points, or 0.96 percent, to 1,251.78. The Nasdaq composite dropped 21.53, or 0.80 percent, to 2,657.22.

European markets were mostly lower as traders looked ahead to the challenges as the region tries to contain its debt crisis. New governments are taking over in Greece and Italy, currently at the center of the crisis. Italy managed to sell five-year bonds to investors and raise $4.1 billion, but the 6.29 percent interest rate was the highest since 1997.