NEW YORK, March 20 (Xinhua) -- U.S. stocks declined on Friday as financials fell for a second day.

    The S&P financial index dropped 5.3 percent. Bank of America fell 10.7 percent while American Express Co. shares tumbled 6.2 percent after analysts said the company may post a loss in 2009 and 2010.

    The U.S. banking sector lost a combined 32.1 billion U.S. dollars in the final three months of 2008, the Federal Deposit Insurance Corp. reported Friday. As a result of the huge fourth-quarter loss, the banking sector's net income for all of last year had been lowered significantly to 10.2 billion dollars from 16.1 billion initially estimated.

    GE shares fell 5.8 percent as analysts lowered their 2009 profit forecasts for the economic bellwether and Dow component.

    Shares of Ford, the second largest U.S. carmaker, jumped after UBS AG rated the shares "buy." Merck also climbed after Cowen & Co. boosted its rating to "outperform."

    Xerox Corp. tumbled after the largest maker of high-speed color printers said first quarter earnings missed the average analyst estimate.

    The Dow Jones industrial average was down 122.42 points, or 1.65 percent, to 7,278.38. The Standard & Poor's 500 index shed 15.50 points, or 1.98 percent, to 768.54. The Nasdaq composite index lost 26.21 points, or 1.77 percent, to 1,457.27.