Wall street closing

U.S. stocks closed in the red Monday, as worries about the Federal Reserve (Fed) easing up on stimulus and credit problems in China kept investors on edge. In U.S. economic news, Dallas Fed president Richard Fisher reiterated, in an interview with the Financial Times, that the central bank would not begin pulling back until “conditions were right,� as they do not want to go from “Wild Turkey to �Cold Turkey’ overnight.� He said that the committee “fully understood� that there would be a significant reaction but warned big players in the financial markets against acting like “feral hogs� and testing the Fed. In international economic news, the People’s Bank of China told the country’s largest banks to rein in risky loans and improve their balance sheets, a warning that sent a jolt through already unsettled equity markets. Short-term borrowing costs skyrocketed last week in China, leading to fears about a credit crunch. The rate at which Chinese banks lend to each other overnight hit a record high above 13 percent last week before moderating. Another key measure of cash in the banking system – the 7-day “repo rate� – peaked at 25 percent. In corporate news, shares of Vanguard Health Systems surged almost 70 percent after inking a $1.8 billion acquisition deal with Tenet Healthcare. Apple shares briefly fell below $400 a piece for the first time since mid-April after Jefferies’ Peter Misek lowered his 12-month price target to $405 from $420. The dollar rose against the euro, the pound, and the yen. Light sweet crude oil for August delivery gained $1.49 to $95.18 a barrel on the New York Mercantile Exchange. Gold futures fell $14.90 to $1,277.10 an ounce. The Dow Jones industrial average dropped 139.84, or 0.94 percent, to 14,659.56. The broader Standard & Poor’s 500 index lost 19.34, or 1.21 percent, to 1,573.09. The technology-heavy Nasdaq composite index fell 36.49, or 1.09 percent, to 3,320.76