NEW YORK (CNN/Money) - Profit warnings from aerospace parts maker Honeywell International and telecom gear maker Lucent Technologies, and a dismal consumer sentiment report pushed U.S. stocks lower Friday morning.

Around 9:55 a.m. ET, the Dow Jones industrial average fell 117.77 to 8,361.64. The Nasdaq composite dipped 6.77 to 1,272.91. The Standard & Poor's 500 index lost 8.97 to 877.94.

Aerospace and defense manufacturer Honeywell International (HON: down $4.14 to $24.20, Research, Estimates), a Dow component, warned late Thursday that third-quarter and full-year earnings per share will come in lower than what analysts have been expecting. The company cited the sluggish economic recovery and a delay in the anticipated second-half improvement in commercial aerospace as airlines continue to struggle with their profitability, which in turn affects the demand for products.

Troubled telecom gear maker Lucent Technologies (LU: down $0.18 to $1.47, Research, Estimates) warned that it will report a sharply wider fourth-quarter loss as it struggles to return to profitability. The company now expects a 45-cent per-share loss, rather than the 16 cent-per-share loss analysts have expected and revenue that is 20-to-25 percent lower in the fourth-quarter from the $2.95 billion it reported in the third quarter.

The University of Michigan's preliminary reading of September consumer confidence fell to 86.2 from 87.6 in August, sources told Reuters. That was well below the 88 reading expected by economists surveyed by Briefing.com.

On an up note, graphics software maker Adobe Systems (ADBE: up $1.96 to $20.41, Research, Estimates) reported third-quarter earnings of 22 cents per share late Thursday, 3 cents better than expected. The company earned 28 cents per share in the same period one year earlier. The company also raised its fourth-quarter revenue and earnings-per-share guidance.

In economic news, U.S. retail sales rose 0.8 percent in August after rising a revised 1.1 percent in July, the Commerce Department said. Excluding volatile automobile sales, retail sales gained 0.4 percent following a rise of 0.2 percent in July. Economists surveyed by Briefing.com expected retail sales to rise 0.5 percent and retail sales ex-auto to rise 0.1 percent.

In addition, the producer price index, which measures wholesale inflation, was unchanged after falling 0.2 percent in July. Excluding food and energy prices, "core" PPI fell 0.1 percent after falling 0.3 percent in July.

Investors were also still digesting remarks made Thursday by Federal Reserve Chairman Alan Greenspan and President Bush. Speaking before the House Budget Committee, Greenspan warned of higher interest rates and limited investment if Congress gives up its fiscal discipline.

In an address to the United Nations General Assembly, Bush tried to gain support against Iraqi president Saddam Hussein. Friday, Bush said he doubted Saddam would meet deadlines to comply with disarmament agreements.

European markets declined at midday on telecom selling, while Asia-Pacific stocks finished lower Friday

Treasury prices were little changed, with the 10-year note yield at 3.95 percent. The dollar was mixed against the yen and euro.

Brent oil futures gained 11 cents to $27.92 a barrel in London, where gold rose modestly.