Wall Street slips, Dow posts biggest weekly loss of 2013

NEW YORK Fri Aug 16, 2013 9:39pm EDT

1 of 4. A trader rubs his head as he looks up at informational screens while working on the floor of the New York Stock Exchange shortly before the closing of the market in New York, August 15, 2013.

Credit: Reuters/Lucas Jackson

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NEW YORK (Reuters) - U.S. stocks fell slightly on Friday, and the Dow industrials posted the biggest weekly loss this year as rising bond yields hurt shares paying rich dividends and earnings from retailers disappointed investors.

The S&P 500 utilities sector, down 1.1 percent, led the day's decline as the yield on the benchmark 10-year U.S. Treasury note rose to a two-year high, making the highest dividend-paying stocks less attractive.

Nordstrom late Thursday was the most recent department store chain to miss revenue estimates. The upscale retailer cut its full-year sales and profit forecasts. Shares fell 4.9 percent to $56.43.

Earlier this week, Macy's reported an unexpected decline in sales and blamed hesitation by consumers. Macy's stock was down 2.8 percent to $44.99.

It was a second week of losses for the major indexes. The Dow fell 2.2 percent for the week, its biggest decline since June 2012, while the S&P 500 and Nasdaq registered their biggest weekly losses since June, 2013.

"Given how the consumer has been such a powerhouse, I think these are things that make you at least stop and wonder if you should be an aggressive buyer of retail stocks," said Eric Kuby, chief investment officer, North Star Investment Management Corp, Chicago.

The Dow Jones industrial average was down 30.72 points, or 0.20 percent, at 15,081.47. The Standard & Poor's 500 Index was down 5.49 points, or 0.33 percent, at 1,655.83. The Nasdaq Composite Index was down 3.34 points, or 0.09 percent, at 3,602.78.

For the week, the S&P 500 was down 2.1 percent and the Nasdaq was down 1.6 percent.

It was a third day of declines for the S&P 500, which also ended just below its 50-day moving average of 1,657, while the Dow ended below its 100-day moving average of 15,102. Breaks below these technical levels could add to selling pressure.

Adding to the market's concern, the Thomson Reuters/University of Michigan's preliminary reading on consumer sentiment in August slipped from July's six-year high.

Other data showed U.S. housing starts rose 5.9 percent in July, compared with a 9.9 percent drop in June. Homebuilders Pulte Group and Lennar Corp gained on the news.

Pulte shares rose 2.3 percent to $16.28, while Lennar advanced 1.8 percent to $33.88.

Green Mountain Coffee Roasters shares rose 3.3 percent to $76.38 after Nasdaq OMX said the company will replace Life Technologies in the Nasdaq 100 index on August 22.

Volume was roughly 4.8 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, well below the average daily closing volume of about 6.4 billion this year.

Decliners beat advancers on the NYSE by nearly 2 to 1 while on the Nasdaq decliners beat advancers by about 13 to 11.

(Additional reporting by Havovi Cooper; Editing by Bernadette Baum, Kenneth Barry and Diane Craft)

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Comments (1)
bobw7s6 wrote:
Wall Street thinks that if they let the stock market slip the Fed will get scare and won’t start cutting back on cheap money to the banks they barrow and charge you high interest rates to barrow, yet pay you almost next to nothing on savings.. This is were the Obama administration and the Fed need to grow a backbone and start raising rates on cheap money what the banks pay the Fed. This is one of the main reason why interest on savings is so low. Once the cost to barrow goes up that the bank are charged, the interest rates on what the banks pat you on your savings and CD accounts will go up.

Aug 17, 2013 1:16am EDT  --  Report as abuse
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