* Dow's 2.2 percent weekly drop biggest since June, 2012
* Stocks of homebuilders advance on rise in housing starts
* Green Mountain Coffee, which joining Nasdaq 100 index,
* Dow down 0.2 pct, S&P down 0.3 pct, Nasdaq down 0.1 pct
By Caroline Valetkevitch
NEW YORK, Aug 16 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,
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 Aug. 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.