Stocks Fall on Trouble in Spain

U.S. stocks fell on Friday  as investors fretted troubles in Spain, where banks are under severe financial strain and government bond yields shot higher. The Dow Jones Industrial Average fell 74.92 points, or 0.60%, to 12,454.83, leaving it 0.7% higher for the week. The S&P 500 lost 2.86 points, or 0.22%, to 1,317.82, giving it a 1.7% rise from the week-ago close. The Nasdaq Composite shed 1.85 point, or 0.07%, to 2,837.53.

Spain’s government is ready to inject 19 billion euros into ailing lender Bankia, the bank said Friday, in what would be the largest bank bailout in the nation’s history. The board of the troubled Spanish bank said in a statement that it was seeking government help as part of a recapitalization plan. The €19 billion figure ($23.8 billion) already has been approved by the government.

The European Union filed a suit against Argentina’s import restrictions with the World Trade Organization (WTO) on Friday, intensifying the disputes between the South American nation and its trading partners.

Consumer sentiment rose to its highest level in more than four years in May as Americans stayed optimistic about the job market, while higher income households expected to see bigger wage increases, a survey released on Friday showed. The Thomson Reuters/University of Michigan’s final reading on the overall index on consumer sentiment rose to 79.3 from 76.4 in April, topping forecasts for 77.8 and an initial May reading of the same.

JPMorgan Chase (NYSE:JPM) Chief Executive Jamie Dimon has been invited to testify before the Senate Banking Committee on June 7 to give lawmakers insight into the bank’s trading loss of at least $2 billion, Senator Tim Johnson said on Friday.

Activist investor Carl Icahn reported a 7.6 percent stake in oil and gas company Chesapeake Energy Corp (NYS:CHK – News), and asked for at least four members of its board to be replaced.