US stocks fell on Thursday as a rebound in the dollar dampened appetite for risk, while a FedEx forecast weighed on transportation shares and a prominent analyst cut estimates for two major banks, compounding losses for financials shares. Economic bellwether FedEx Corp, forecast third-quarter profit below expectations, sending shares tumbling 5.3 percent to $85.17.
The Dow Jones Transportation average fell 1.1 percent. Influential bank analyst Meredith Whitney cut earnings estimates for Goldman Sachs Group Inc and Morgan Stanley for 2010 and 2011. Goldman shares fell 2 percent to $161.64, while Morgan Stanley dropped 3.7 percent to $29.22. The S&P financial index dropped 1.2 percent.
The Dow Jones industrial average fell 98.17 points, or 0.94 percent, to 10,342.95. The Standard & Poor's 500 Index lost 10.04 points, or 0.91 percent, to 1,099.14. The Nasdaq Composite Index gave up 21.97 points, or 1 percent, at 2,184.94.