Stock in Sprint Nextel Corp., the third-biggest U.S. wireless carrier, fell more than 6 percent Monday amid concerns over the management of its fourth-generation network expansion.
About 250 employees that had been assigned to Ericsson AB to help plan and oversee the network were reassigned back to Sprint. The move was highlighted in a report by Detwiler Fenton Co., which called the change a “black eye” for Ericsson and a sign that Sprint might have had troubles coordinating the work.
Sprint shares closed Monday at $3.09, down 20 cents.
Meanwhile, Europe's latest efforts to quell its financial crisis left investors exasperated Monday, causing steep losses in stock markets on both sides of the Atlantic.
In Europe, Spain formally asked for help to rescue the country's ailing banks, but its request left many questions unanswered, including how much it needs of the $125 billion loan package offered by other European governments. The uncertainty unsettled markets, pushing borrowing costs higher for Spain's government.
Spain's banks have been hobbled by loans made during a real-estate bubble, and the government has been inconsistent about how much help it will need to save them.
Later Monday, Cyprus became the fifth eurozone country to request financial aid from its partners in the troubled European currency union as it struggles to shore up banks that took heavy losses on Greek debt.
The island nation's government said in a statement that it required assistance following “negative spillover effects through its financial sector, due to its large exposure in the Greek economy.”
Government spokesman Stefanos Stefanou wouldn't say how much Cyprus would ask for from the European bailout fund, saying the amount will be subject to negotiations in the coming days. The 27 leaders of the European Union are meeting in Brussels on Thursday and Friday.
"Right now it's all about Europe, and confidence is pretty low," said Doug Cote, chief market strategist for ING Investment Management. "The policies that they proposing are too little too late."
Big bank stocks in the United States slumped. Many analysts expect banks in Europe and the United States to suffer from a freeze-up in Europe's financial system.
Bank of America dropped 4 percent, the biggest fall among the 30 stocks in the Dow Jones industrial average. BofA's stock lost 34 cents to $7.60. JPMorgan Chase fell 67 cents to $35.32 and Citigroup dropped $1.24 to $26.75.
Analysts worry that Europe's piecemeal approach to its spreading government debt crises may fall short, and the banking system of a large country like Spain could collapse. That could shock tightly connected global financial markets.
The Dow Jones industrial average dropped 138.12 points to close at 12,502.66, a loss of 1.1 percent. The broader Standard Poor's 500 index fell 21.30 points to 1,313.72. The Nasdaq composite lost 56.26 points, or 1.9 percent, to 2,836.16. The BATS 1000 fell 227.83 points, or 1.52 percent, to close at 14,722.66.
Energy stocks were also big losers after the price of crude oil fell again. ExxonMobil fell 87 cents to $81.24.
Energy prices have been falling as traders anticipate that slower growth in China and the crisis in Europe will drag down global economic growth and decrease demand for energy.
Among other stocks making big moves Monday:
• Teva Pharmaceutical Industries gained 4 percent after the drugmaker said a federal court reaffirmed patents protecting its multiple sclerosis treatment Copaxone. The stock jumped $1.71 to $39.72.
• Chesapeake Energy dropped 8 percent. Reuters reported that the company colluded with a Canadian rival to suppress land prices in areas that were considered rich in oil and natural gas. The stock lost $1.58 to $17.03.
• Pfizer and Bristol-Myers Squibb both sank after federal regulators delayed approving their highly touted blood-thinning drug, Eliquis. Bristol-Myers's stock dropped 3 percent, or $1.23, to $34.13. Pfizer's fell 1 percent, or 26 cents, to $22.47.
Here’s the scoop from Monday on Kansas City area stocks:
Capitol Federal Financial fell 17 cents, or 1.40 percent, to close at $11.63.
Cerner Corp. fell $2.55, or 3.16 percent, to close at $78.25.
Collective Brands Inc. rose 6 cents, or 0.28 percent, to close at $21.35.
Commerce Bancshares Inc. fell 74 cents, or 1.96 percent, to close at $36.95.
Compass Minerals was unchanged at $69.70.
DST Systems Inc. fell 83 cents, or 1.56 percent, to close at $52.34.
Ferrellgas Partners L.P. fell 29 cents, or 1.54 percent, to close at $18.59.
Garmin Ltd. fell 16 cents, or 0.43 percent, to close at $36.82.
Great Plains Energy fell 9 cents, or 0.43 percent, to close at $20.87.
H Block Inc. fell 26 cents, or 1.68 percent, to close at $15.21.
Inergy L.P. fell 54 cents, or 2.98 percent, to close at $17.56.
Kansas City Life Insurance Co. fell 35 cents, or 1.02 percent, to close at $33.92.
Kansas City Southern fell 99 cents, or 1.46 percent, to close at $66.71.
Layne Christensen Co. fell 10 cents, or 0.50 percent, to close at $20.10.
O'Reilly Automotive Inc. fell $2.12, or 2.18 percent, to close at $95.23.
Sprint Nextel Corp. fell 20 cents, or 6.08 percent, to close at $3.09.
UMB Financial Corp. fell 15 cents, or 0.31 percent, to close at $48.83.
Waddell Reed Financial Corp. fell 90 cents, or 3.09 percent, to close at $28.18.
YRC Worldwide Inc. fell 30 cents, or 3.73 percent, to close at $7.75.
The Associated Press and Bloomberg contributed to this report.