U.S. Stocks Retreat, Led by Banks

Citigroup led financial shares lower after it said it would sell at least $20.5 billion of equity. The market looked ahead to Wednesday's Fed statement

By Elizabeth Stanton and Rita Nazareth

Dec. 15 (Bloomberg) -- U.S. stocks fell for the first time in five days, led by financial shares, as Citigroup Inc. (C) moved toward selling shares to repay government bailout funds and credit-card delinquencies increased at JPMorgan Chase & Co. (JPM).

Citigroup, the only major lender still dependent on U.S. taxpayers, fell 3.8 percent following a 6.3 percent drop yesterday after saying it will sell at least $20.5 billion of equity and debt. Marshall & Ilsley Corp. (MI) tumbled 6.8 percent after UBS AG advised investors to sell shares of five regional lenders, citing possible stock sales. Best Buy Co. (BBY), the largest electronics retailer, tumbled 8.5 percent after saying its gross profit rate will be lower than anticipated.

"Issuance is an issue," said Marshall Front, chairman of Chicago-based Front Barnett Associates LLC, which manages $500 million. "This is a lot of stock in the financial area for the market to digest."

The Standard & Poor's 500 Index lost 0.6 percent to 1,107.93 at 4:03 p.m. in New York. The Dow Jones Industrial Average slipped 49.05 points, or 0.5 percent, to 10,452. Both retreated from their highest closing levels in 14 months.

Stocks also declined as reports on wholesale prices and industrial production spurred concern the Federal Reserve will unwind stimulus measures. The government said producer prices climbed 1.8 percent in November, more than twice the median economist estimate in a survey. U.S. industrial production increased 0.8 percent in November, more than estimated and the most in three months.

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