Sector Snap: National bank stocks tumble

Shares of national banks fell Thursday, along with the broader market, as jobless claims took an unexpected leap and many retailers reported sluggish August sales.

New evidence that the economy is still suffering rattled Wall Street Thursday, sending the Dow Jones Industrial average free-falling more than 280 points, or 2.5 percent, to 11,250.84.

The Labor Department reported that new applications for unemployment benefits rose by 15,000 from the previous week. Meanwhile, many of the nation's retailers said shoppers curbed their spending last month in the face of higher gas and food prices.

Among the sector's biggest decliners were Washington Mutual Inc., which dropped 27 cents, or 6.1 percent, to $4.13 in afternoon trading, and Wachovia Corp., which lost 79 cents, or 4.6 percent, to $16.39.

Bank of America Corp. shares tumbled $1.54, or 4.7 percent, to $31.42 and Citigroup Inc. tumbled 68 cents, or 3.5 percent, to $18.93.

Wells Fargo & Co. declined 63 cents, or 2 percent, to $30.38. JPMorgan Chase & Co. shed 78 cents to $38.93.