Stock averages close down 0.4% to 0.8% for the session, dropping
the DJIA down 1.6% for the week, the Nasdaq off 2%, and the S&P 500
down 2.2%.
Stocks fell Friday after a report on new orders for durable goods
unexpectedly fell in August and a bellwether tech company missed the
Street on earnings. Investors found little solace in a rising consumer
sentiment index and fractional increase in new home sales that missed
expectations.
Consumers' mood brightened in late September, according to the
Reuters/University of Michigan index, a widely watched measure of
consumer sentiment. The index jumped to 73.5 in late September from
70.2 earlier in the month, topping economists' consensus view for an
increase to 70.5. The gain also tops the recent high in sentiment of
70.8 in June. Sentiment is now at the highest level since early 2008.
New home sales ticked up in August maintaining a run of four months
of increases, but the move higher was statistically insignificant for
the widely revised report from the Commerce Department. Sales rose 0.7%
in August to a seasonally adjusted annual rate of 429,000 from a
downwardly revised 426,000 in July, which was previously reported as
433,000. Sales were weaker than the 440,000 annual pace expected by
economists surveyed by MarketWatch and more than 3% below last August's
rate.
Earlier this morning, a new report on orders for manufactured goods
fell by the largest amount in seven months, led by a decline in
commercial aircraft orders, the government reported. Couple with
yesterday's disappointing report on existing home sales, investors are
taking some profits off the table.
Airline stocks were one of the bright spots in today's trading
after UBS raised its ratings for several major carriers, including US
Airways (
LCC), Continental (
CAL) and American parent AMR Corp. (
AMR).
Research in Motion's (
RIMM) revenue warning caused the broader tech category to skid.
Crude for November delivery rose 13 cents, or 0.2%, to end at
$66.20 a barrel after dropping as low as $65.05, the lowest level for a
front-month contract since July 30.
Oil prices ended the week down 8.4%, the biggest weekly loss since the five sessions ended on July 10.
NYSE down 38.56 (0.6%) to 6,823.75.
-DJIA down 42.02 (0.4%) to 9,665.
-S&P 500 down 6.39 (0.6%) to 1,044.
-Nasdaq down 16.69 (0.79%) to 2,091.
GLOBAL SENTIMENT
Hang Seng down 0.13%
Nikkei down 2.64%
FTSE up 0.06%
UPSIDE MOVERS
(+) SLE sells unit to Unilever for $1.88 bln; sets $1 bln buyback.
(+) MCD hikes dividend.
(+) TIBX beat with results.
(+) ALTH said FDA grants accelerated approval for lymphoma treatment.
(+) MFE gets analyst upgrade.
(+) F to build third assembly plant in China.
(+) C reportedly in talks with Barclays to sell some retail assets in Portugal.
(+) UAUA part of airline sector analyst upgrade.
(+) PALM dips then recovers; backs FY outlook.
DOWNSIDE MOVERS
(-) AONE looks to continue IPO run.
(-) RIMM missed with Q2 revenue and guides for Q3 rev miss.
(-) UCBI prices shares.
(-) HERO prices shares.
(-) KBH loss narrows from year-ago quarter but revenue drops 33%.
(-) METR prices shares.
(-) EMCI gets analyst downgrade.
