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Empresas y finanzas

S&P at 12-year low, Citi stirs fear


    NEW YORK (Reuters) - Stocks fell and the S&P 500 closed at a 12-year low on Friday, after the government said it will take a large stake in Citigroup's common shares, fanning fears it will increase its role in other major banks.

    * Healthcare and drug companies, such as Merck & Co and Johnson & Johnson Inc , fell for a second day on worries that U.S. President Barack Obama's budget proposal will strangle profits as the administration tries to rein in healthcare costs.

    * Data showing the U.S. economy shrinking at an annual rate of 6.2 percent last quarter also weighed on the market.

    * The Dow Jones industrial average fell 119.15 points, or 1.66 percent, to 7,062.93. The Standard & Poor's 500 Index lost 17.74 points, or 2.36 percent, to 735.09. The Nasdaq Composite Index was down 13.63 points, or 0.98 percent, at 1,377.84.

    (Reporting by Leah Schnurr)