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US stocks sag at open

New York - US stocks opened lower Wednesday as turmoil across North Africa and the Middle East and fears of spreading radiation from Japan's hobbled nuclear plant weighed down on the markets.

At 1400 GMT, the Dow Jones Industrial Average had lost 22.90 (0.19%) to 11 995.73.

The broad-based S&P 500 ceded 7.28 points (0.56%) to 1 286.49, while the Nasdaq index fell 14.27 (0.53%) to 2 669.60.

"Japan - which warned of dangerous levels of radioactive iodine in Tokyo's tap water - and Libya (are) likely to remain in the Street's crosshairs," said Andrea Kramer of Schaeffer's Investment Research.

"In addition, traders will be taking their cues from the latest round of earnings reports, as well as a round of housing data expected to hit the Street just after the open."

Markets were also waiting for any new hints on the economy's direction and the impact of higher oil prices from Fed chairman Ben Bernanke, who was to give an address at 1600 GMT on the banking sector.

Bank of America shares fell 2.4% after it said the Federal Reserve denied it permission for a "modest" dividend increase.

BofA said the central bank - which had placed a moratorium on new dividend payments or increases on the biggest banks as they rebuilt capital - said it could apply for the increase again with a revised capital plan.

BofA said it would submit a new plan and "intends to seek permission for a modest increase in its common dividend for the second half of 2011."

Bond prices rose. The yield on the 10-year Treasury fell to 3.29% from 3.33% late Tuesday, and the 30% moved to 4.40% from 4.44%.

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