NEW YORK, Nov 19, 2007 (AP) -- Stocks fell Monday as Wall Street absorbed a gloomy outlook for the banking sector and anticipated bleak news from the National Association of Homebuilders.

Setting the tone was Goldman Sachs' downgrade of large banks, and its estimate that Citigroup Inc. would have to write down $15 billion due to its exposure to risky debt over the next two quarters.

The worry on Wall Street is that the housing market is getting so weak that it will crimp consumer spending, which until now has helped keep the economy afloat. Ahead of the holiday shopping season, any signs that Americans are pulling back could prevent a December rally.

Later Monday, the NAHB releases its November housing forecast. Economists polled by Thomson/IFR expect the index to hold at 18, having dropped to that level in October after eight consecutive months of declines.

In midmorning trading, the Dow Jones industrial average fell 79.42, or 0.60 percent, to 13,097.37.

Broader stock indicators also declined. The Standard & Poor's 500 index fell 10.01, or 0.69 percent, to 1,448.73, and the Nasdaq composite index fell 11.28, or 0.43 percent, to 2,625.96.

Stocks have fallen in six of the last eight sessions. Last week, stock finished higher after a string of volatile sessions. The Dow ended up 1.03 percent for the week, while the S&P 500 index ended up 0.35 percent, and the Nasdaq finished up 0.35 percent.

Government bond prices fell Monday. The yield on the 10-year Treasury note, which moves opposite its price, rose to 4.17 percent from 4.15 percent late Friday. The dollar fell against other major currencies, while gold rose modestly.

Crude oil futures for January delivery rose 6 cents to $93.90 per barrel on the New York Mercantile Exchange.

In corporate news, Citigroup, which said earlier this month it would likely write down $8 billion to $11 billion in the fourth quarter, fell $1.37, or 4 percent, to $32.63 after the Goldman downgrade to a "sell" rating.

Lowe's Cos. posted a 10 percent decline in third-quarter profit Monday, which was slightly better than expected. But the home improvement retailer lowered its forecast in anticipation of further deterioration in housing. Lowe's fell $1.03, or 4.1 percent, to $23.98.

Celgene Corp.'s announcement late Sunday that it has agreed to buy Pharmion Corp. for $72 a share in a cash-and-stock deal worth $2.9 billion failed to bring any enthusiasm to Wall Street. Celgene fell 29 cents to $64.61, while Pharmion jumped $18.01, or 37 percent, to $67.29.

Declining issues outnumbered advancers by about 5 to 1 on the New York Stock Exchange, where volume came to 181.2 million shares.

The Russell 2000 index of smaller companies fell 11.36, or 1.47 percent, to 758.18.

Stock markets overseas slumped. In Asian trading, Japan's Nikkei stock average fell 0.74 percent, while Hong Kong's Hang Seng index decreased 0.56 percent. In European trading, Britain's FTSE 100 declined 0.94 percent, Germany's DAX index dipped 0.68 percent, and France's CAC-40 slid 0.65 percent.

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