Wall Street falls as banks, Boeing weigh

NEW YORK (Reuters) - Stocks opened lower on Monday as investors paused after a five-week rally to prepare for key company earnings later in the week, and bank stocks reversed part of their sharp gains from last week.

Shares of BOEING (BA.NY)Co tumbled 6 percent after the Dow component said after the bell on Thursday that first-quarter profit would be slashed by lower-than-expected airplane prices and production cuts on its lucrative wide-body planes.

Also hitting sentiment, the U.S. Treasury Department is directing General Motors to lay the groundwork for a bankruptcy filing by June 1, The New York Times reported on Sunday, citing people with knowledge of the plans. Shares of GM were down more than 13 percent.

The Dow Jones industrial average <.DJI> fell 86.74 points, or 1.07 percent, to 7,996.64. The Standard & Poor's 500 Index <.SPX> slid 8.92 points, or 1.04 percent, to 847.64. The Nasdaq Composite Index <.IXIC> was off 13.84 points, or 0.84 percent, to 1,638.70.

(Reporting by Leah Schnurr; Editing by Theodore d'Afflisio)