Stocks slide as eurozone fears spread

Stocks stumbled Monday on anxiety that Spain will require a full sovereign bailout and that Greece won't be able to satisfy its bailout requirements and will have to exit the eurozone.

The Dow Jones Industrial Average ($INDU) was down 133 points at 12,689. The S&P 500 ($INX) was down 17 points at 1,345. The Nasdaq Composite ($COMPX) was down 51 points at 2,874.

U.S. stocks also dropped sharply on Friday as soaring Spanish borrowing costs renewed concerns about Europe's debt crisis.

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On Monday, Spanish bonds yields surged to their highest levels since the creation of the euro, even after the continent's finance ministers on Friday backed the details of an aid package worth up to 100 billion euros for Madrid to bolster its troubled banks.

Over the weekend, Murcia became the second Spanish region to ask for government financial aid, following Valencia's request late last week. Up to six regions may be next in line to ask for assistance.

The euro fell to more than a two-year low against the dollar amid worries about the deepening crisis across the eurozone.

Compounding the eurozone anxiety was a report by the German magazine Der Spiegel over the weekend that the International Monetary Fund may decide not to help with any more financing for Greece -- highlighting its growing impatience with the burdens of trying to help hold up the country -- as international inspectors visit Athens beginning Tuesday. They are expected to demand more spending cuts from Greek leaders in exchange for more aid.

The FTSE in London was down 2.1%, and the DAX in Germany was down 1.3%.  The Hong Kong Hang Seng index settled down nearly 3%, and the Nikkei in Japan fell 1.86%.

In corporate news, NRG Energy (NRG) said Sunday it reached a deal to buy GenOn Energy (GEN) for $1.7 billion in stock. The merger creates the largest competitive power generation company in the U.S.

McDonald's (MCD) reported below-consensus quarterly earnings and spoke of slower July same-store sales growth than in the second quarter.

Reporting after Monday's closing bell is chip-maker Texas Instruments (TXN).

Germany's Bayer and Onyx Pharmaceuticals (ONXX) said Monday that Tarceva, a jointly produced drug, in combination with Nexavar tablets for the treatment of hepatocellular carcinoma, a type of liver cancer, failed in further improvement of overall survival.

DreamWorks Animation (DWA) reached a deal to buy Classic Media for $155 million. Classic Media owns such titles as "Casper," "Rudolph the Red-Nosed Reindeer" and "Lassie."

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