US STOCKS-Wall St slides after weak consumer sentiment data

Fri Aug 14, 2009 10:39am EDT

Related Topics

* Weak consumer sentiment data sparks concern

* Stocks drop more than 1 percent

* Boeing weighs on Dow; down 4 pct after production halt

* For up-to-the-minute market news click [STXNEWS/US] (Updates with consumer sentiment data; changes quote)

By Angela Moon

NEW YORK, Aug 14 (Reuters) - U.S. stocks fell more than 1 percent on Friday after a report showed consumer sentiment weakened, while Boeing Co (BA.N), a Dow component, pressured the index after flaws halted work on parts of its long-delayed jetliner.

The Reuters/University of Michigan Surveys of Consumers' preliminary August consumer sentiment reading was significantly below the market forecast. (For details, see [nN14258383])

"Today's numbers were sort of a confirmation of yesterday's weak numbers on retails," said Tim Ghriskey, chief investment officer at Solaris Asset Management in Bedford Hills in New York.

"Nobody expects consumers to step up and lead us out of recession ... but deterioration (like today) really has an impact on the market."

The Dow Jones industrial average .DJI was down 136.87 points, or 1.46 percent, at 9,261.32. The Standard & Poor's 500 Index .SPX fell 15.43 points, or 1.52 percent, at 997.30. The Nasdaq Composite Index .IXIC dropped 33.24 points, or 1.65 percent, at 1,976.11.

Boeing dipped 4 percent to $44.73 after the company said an Italian supplier stopped production on two sections of its long-delayed 787 Dreamliner after structural flaws were found on fuselages. [ID:nLE480360]

Major retailer JC Penney Co Inc (JCP.N) fell 5 percent to $31.72 despite reporting a narrower-than-expected second-quarter loss. [ID:nN14262827].

Abercrombie & Fitch Co (ANF.N) was up 2.4 percent to $33.76 after reporting a quarterly loss and saying it was on track with international expansion plans. [ID:nBNG450751]

Citigroup Inc (C.N) slipped 3 percent to $3.93, erasing earlier gains, after Bank of America-Merrill Lynch Securities upgraded the stock to "buy." [ID:nBNG160210]

The weak consumer sentiment report overshadowed other data that showed U.S. industrial production rose more than expected in July, beating the market forecast.

The S&P 500 is still up about 47.5 percent from its closing-low set on March 9.

(Additional reporting by Ryan Vlastelica; editing by Jeffrey Benkoe)

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