US mkts slide on financial concern

CNBC's Rebecca Jarvis -Stocks closing in a red on concerns about financials the Dow lost 134 points today the S&P 500 shed 14 and the Nasdaq was lower by 31points.

Financial stocks got hammered under a day of bad news beginning with a warning from major British lenders signaling more trouble ahead for the UK mortgage market. Then came news of executive shake-ups Wachovia and Washington Mutual followed by S&P’s downgrade of several financial firms.

Crude oil futures began with a month of slight increase. Prices gained 41 cents on the day closing at USD 127.76 cents a barrel.

US factories recorded a fourth consecutive month of declining production in May, but that drops had been tampered by a boost in US exports is the weaker dollar makes American goods cheaper.

Meantime airlines shares struggled to stay aloft after a Trade Group predicted the industry could lose more than USD 6 billion this year, if oil prices hit USD 134/bbl.

Wall Street action:

Dow loses 134 pts, S&P 500 sheds 14 pts and Nasdaq declines 31 pts
Financials drag the market down
Mgmt shake-ups in Wachovia and Washington Mutual
S&P cuts debt ratings on Merrill Lynch, Lehman & Morgan Stanley
Crude climbs, trading above $127/bbl
US factories report 4th consecutive month of declining production in May
Exports get a boost in May due to weak dollar
Trade group predicts that airline industry can lose upto $6 bn this year if oil hits $134/bbl