(By Salman - iStockAnalyst Writer) US stocks finished with steep losses on Friday a decline in consumer confidence and consumer sentiment index spooked investors. A sharp selloff in financials also pressurized stocks.
The Dow Jones Industrial Average rallied 199.89 points or 2.05% to finish at 9,962.58. The S&P 500 jumped 23.48 points or 2.25% to end at 1,066.11. The Nasdaq Composite surged 37.94 points or 1.84% to 2,097.55.
The Reuters/University of Michigan reported that final index of consumer sentiment decreased to 70.6 from 73.5 in September. Economists expected the index to decline to 70.
A release by Commerce Department showed that US consumer spending, which accounts for nearly two third of economy, fell 0.5% in September. Personal income remained flat in September. Economists expected consumer spending to drop 0.5% and personal income to decrease 0.5% in September.
Shares of financials finished with steep losses. Bank of America (NYSE:
BAC) sank $1.15 or 7.31% to $14.58. JP Morgan & Chase & Co. (NYSE:
JPM) plummeted $2.58 or 5.82% to close at $41.77. American Express Co. (NYSE:
AXP) lost $1.60 or 4.39% to close at $34.84.
Alcoa Inc. (NYSE:
AA), the largest US aluminum maker, tumbled 58 cents or 4.46% to $12.42.
Shares of diversified US firm General Electric Co. (NYSE:
GE) plunged 61 cents or 4.10% to $14.26.
Among energy stocks, Exxon Mobil (NYSE:
XOM) slid $2.29 or 3.10% to $71.67.
Early on Friday, Chevron Corp. (NYSE:
CVX) said that its third-quarter net income tumbled 51% to $3.8 billion, or $1.92 a share, from $7.9 billion, or $3.85 a share, in the prior-year period. Total revenue plunged to $46.6 billion from $78.9 billion. Chevron stocks fell $1.41 or 1.81% to end at $76.37.
Shares of Sony (NYSE:
SNE) plunged $1.15 or 3.77% to $29.39 after it reported Friday that its net loss for the quarter ended in September totaled 26.3 billion yen ($292 million), compared to net income of 20.8 billion yen, in the year-ago quarter. Excluding net income (loss) of affiliated companies and restructuring charges, operating income rose by 16% to 12.5 billion yen.
MetLife (NYSE:
MET) shares subtracted $2.81 or 7.63% to close at $34.03. The life insurer reported Thursday that its swung to a third quarter net loss of $650 million, or 79 cents per share, compared with a profit of $600 million, or 83 cents per share, in the year-ago quarter. Excluding investment gains and losses, operating earnings increased 18 percent over the third quarter of last year to $718 million, or 87 cents per share. Total revenue slipped 1 percent to $12.41 billion.
Las Vegas Sands (NYSE:
LVS) announced that its third quarter net loss widened to $123 million, or 19 cents a share, from $32.2 million, or 9 cents a share, in the comparable quarter last year. On an adjusted basis, the company earned 3 cents a share, up from 2 cents. Revenue rose 3.2% to $1.14 billion. Shares of the casino operator rallied 33 cents or 2.24% to $15.09.
European stocks settled lower. The UK FTSE fell 93.17 points or 1.81% to 5,044.55. The German DAX and French CAC decreased 3.09% and 2.86% respectively.
Asian stocks finished higher. The Nikkei 225 jumped 143.64 points or 1.45% to 10,034.74. The Hang Seng index of Hong Kong surged 487.88 points or 2.29% to 21,752.87.
NYMEX crude oil for December delivery declined $2.87 or 3.6% to settle at $77 a barrel.
Disclosure: Author doesn't own any of the stocks discussed here.
