Profit-taking took a bite out of the recent rally. Four banks that passed the government stress test with flying colors are planning to pay back government funds borrowed from the Troubled Assets Relief Program by issuing shares. That didn t sit well with investors. The financial sector took big hits, and the SPDR Financial Select Sector fund (XLF) was one of the most heavily-traded tickers during Monday's session. The iShares MSCI Emerging Markets fund (EEM) also traded a higher than usual volume thanks, in part, to a Wall Street Journal front page story that said investors were pumping money into those overseas markets. The Dow Jones Industrial Average lost 155 points to close at 8418. To see a complete rundown on Monday s trading session see our market story.

Winners

Betting against emerging market was a smart play on Monday. The ProShares UltraShort MSCI Emerging Markets fund (EEV) gained 4.5%. The iShares Nasdaq Biotechnology fund (IBB) stemmed the selloff tide gaining 1.5% amid investor bets that pharmaceutical and health care stocks could lead a path out of the recession.

Losers

Regional Bank HOLDRS (RKH) shed 7.5% on Monday as major holdings U.S. Bancorp (USB) and BB&T (BBT) unveiled plans to issue more shares to pay back the TARP funds. The SPDR KBW Bank fund (KBE) dropped 6.2%.

Monday s Industry Headlines

Bids heat up iShares acquisition
The English financial press reported a trio of new bids have topped CVC Capital Partners' $4.4 billion deal for iShares, the exchange-traded funds business of Barclays Global Investors. Private equity firms Apax, BC Partners and Hellman & Friedman were named in weekend reports by the Daily Telegraph and the Sunday Times of London as potential bidders with new offers pegged as high as $5.3 billion.

Tuesday s Notebook

Earnings and Conference Calls
Advanced Life Sciences, American Italian Pasta, Applied Materials, Federal Agricultural Mortgage Corp., GenTek, Great Atlantic & Pacific Tea, InterContinental Hotels Group, Learning Tree International, MBIA, O'Charleys, Realogy, Trend Micro, Warnaco Group

Economic Data
7:45 a.m. ICSC Chain Store Sales
8:30 a.m. March Trade Balance: Previous
8:55 a.m. Redbook Retail Sales
2:00 p.m. March Federal Budget Balance
5:00 p.m. ABC/Washington Post Consumer Confidence

A look at how the industry's most popular ETFs did on Monday: