Stocks slide after European Central Bank said its overnight deposits hit a record; Dow loses 140, closes at 12,151

Cindy Allen

NEW YORK , December 28, 2011 (Associated Press) – Stocks are closing lower after Europe's central bank reported that its overnight deposits hit another record, the latest sign of worry among European lenders.

The S&P 500 fell 16 points, or 1.3 percent, to 1,250 Wednesday. It was the first decline for the S&P after five days of gains.

The Dow Jones industrial average lost 140 points, or 1.1 percent, to 12,151.The Nasdaq composite declined 35 points, or 1.3 percent, to 2,590.

The European Central Bank said the continent's banks parked a record $590.72 billion with it overnight, showing that banks would prefer to earn low interest rates from the ECB rather than lend to each other. The disclosure also hurt the euro, which fell to its lowest level against the dollar since January.

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