US STOCKS-Wall St drops after Swiss move; banks tumble
* Bank of America, Citi down after results
* Initial jobless claims rise
* Indexes off: Dow 0.37 pct, S&P 0.41 pct, Nasdaq 0.62 pct (Updates to market open)
By Chuck Mikolajczak
NEW YORK, Jan 15 (Reuters) - U.S. stocks fell, erasing small gains at the open on Thursday, as investors grappled with a move by the Swiss National Bank to scrap its three-year euro cap on the franc.
Trading was likely to remain volatile through the session, on the heels of choppy premarket action that saw futures fluctuate between gains and losses, after the SNB said it would discontinue the cap it introduced on Sept. 6, 2011 to fight recession and deflation threats.
Swiss stocks traded in the U.S. moved higher, including UBS , up 2.4 percent at $16.87, Credit Suisse, up 3.2 percent at $23.55 and Novartis, up 1.9 percent to $98.64, as a strengthening Swiss franc made U.S.-dollar denominated stocks cheaper.
"The Swiss move was obviously the big move, people are trying to get their arms around what it means for the U.S. stock market," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.
"It will take some of the morning to sort out the impact of the Swiss move across the board." Continued...