Wall St drops as financials drag after run-up

By Ellis Mnyandu

NEW YORK (Reuters) - U.S. stocks fell on Monday as brokerage downgrades of companies, including credit card provider American Express Co, fuelled a sell-off among shares of financial services companies.

The downgrades, combined with worries about the economy, turned sentiment sour after Wall Street's best week in nearly five years last week.

Shares of American Express fell 3.1 percent to $48.03 on the New York Stock Exchange. The stock was cut to "sell" by UBS. Shares of JPMorgan Chase & Co were a top drag on the S&P 500, down 1.7 percent at $47.40.

Shares of financials had been among last week's biggest gainers as investors took the opportunity to scoop up stocks cheaply after a prolonged period of turbulence.

"I think today we're just giving back a little bit. It's simply because we had a great move last week," said Todd Leone, head of listed trading at Cowen & Co. in New York.

The Dow Jones industrial average was down 60.80 points, or 0.48 percent, at 12,682.39. The Standard & Poor's 500 Index was down 8.76 points, or 0.63 percent, at 1,386.66. The Nasdaq Composite Index was down 16.47 points, or 0.68 percent, at 2,396.89.

Traders said the New York Giants' Super Bowl win contributed to lighter than normal volume, with talk about the football game dominating trading floors and some traders opting to take the day off.

Data showing that new orders at U.S. factories rose less-than-expected in December added to unease about the economy's outlook, weighing on shares of big manufacturers such as Caterpillar Inc, which fell 1 percent to $70.99.