NEW YORK (AP) — Stocks fell Thursday following disappointing forecasts from retailers and concern about the government’s financial overhaul package.
The Dow fell 145.64, or 1.4 percent, to 10,152.80. The Standard & Poor’s 500 index fell 18.35, or 1.7 percent, to 1,073.69. It was the first four-day drop for the S&P 500 index since early May. The Nasdaq composite index fell 36.81, 1.6 percent, to 2,217.42.
The Dow Jones industrial average lost 146 points after edging higher Wednesday. Broader indexes dropped for a fourth straight day.
Downbeat forecasts from retailers raised concerns that high unemployment and weak consumer spending would stall an economic rebound. Athletic apparel maker Nike Inc. dropped four percent after saying higher costs could hurt earnings. Bed Bath & Beyond fell 2.4 percent after the home goods retailer’s second-quarter earnings forecast missed expectations.
Dell Inc. lost 6.4 percent after the computer maker’s fiscal year forecast failed to top expectations, as some analysts had hoped.
Meanwhile, financial stocks fell after Congress continued working on a bill to overhaul regulation of the industry. Democratic leaders hoped to reconcile the House and Senate bills by Thursday evening so President Barack Obama can have a deal in place by the time he meets with the leaders of the Group of 20 nations this weekend in Toronto.
Traders were concerned that some provisions of the bill would cut into bank profits. Large banks were lobbying to strike a proposal that would make the industry cover costs to dismantle the mortgage giants Fannie Mae and Freddie Mac. Bank of America Corp. dropped 2.7 percent and JPMorgan Chase & Co. lost 2.2 percent.
Stocks of health care and consumer products companies rose, another sign that investors are anxious and looking for investments considered reliable in a weak economy.
Economic news didn’t help. The government said initial claims for unemployment benefits fell last week but remained above the level that would signal employers are ramping up hiring. A second report indicated that orders for durable goods fell last month for the first time in six months.