Aug. 11 (Bloomberg) -- U.S. stocks dropped the most in a month, led by financials, after JPMorgan Chase & Co. said credit losses may overwhelm capital at MBIA Inc. and analyst Dick Bove said bank earnings won’t improve in the second half of the year.
MBIA, the biggest bond insurer, tumbled 13 percent after JPMorgan cut the company to “underweight.” All but one of 24 shares in the KBW Bank Index fell as Bove, analyst at Rochdale Securities, said banks will probably retreat. CIT Group Inc., the commercial lender trying to avoid a collapse, slid 19 percent after delaying its earnings report. Sprint Nextel Corp. and Yum! Brands Inc. declined on analyst downgrades. (more)