August 16, 2009
Wall Street retreated Friday, as confidence among U.S. consumers unexpectedly fell in August for a second consecutive month as concern over jobs and wages grew.
The Reuters/University of Michigan preliminary index of consumer sentiment decreased to 63.2, the lowest level since March. Economists had expected a reading of 68.5 compared with 66.0 in the final July report. The measure reached a three-decade low of 55.3 in November.
Major indexes extended early losses after the sentiment report. On other economic data, the U.S. Commerce Department said Friday consumer prices showed no changed in July, in line with analysts' expectations and far below the 0.7 percent jump in June. Prices fell 2.1 percent year on year, the biggest annual decline since a similar drop in the period ending in January 1950.
Raw-materials producers fell 2.7 percent as a group for the steepest loss among 10 industries in the S&P 500, as crude oil fell to a two-week low and metals prices slumped. J.C Penney slid 6.2 percent, after the third- largest U.S. department-store chain gave a third-quarter forecast trailing analysts' estimates.
The Dow Jones lost 76.79, 0.82 percent, to 9,321.40. Broader indexes also lost ground. The Standard & Poor's 500 index dipped 8.64, or 0.85 percent, to 1,004.09 and the Nasdaq fell 23.83, or 1.19 percent, to 1,985.52.