Stocks retreat after recent rally
Wall Streeters step back after boosting stocks by 20% in just three weeks. President Obama's meeting with bank CEOs in focus.
NEW YORK (CNNMoney.com) -- Stocks tumbled Friday morning as investors took a step back after boosting equities more than 20% over three the past weeks.
The Dow Jones industrial average (INDU) fell 120 points, or 1.5%. The S&P 500 (SPX) index lost 13 points, or 1.7%. The Nasdaq composite (COMP) lost 27 points, or 1.7%.
Wall Street has mounted a strong rally of late, with stocks gaining more than 20% in less than three weeks. On Thursday, the Dow and S&P 500 both gained 2.3%, and the Nasdaq soared 3.8%.
Robert Brusca, chief economist at Fact and Opinion Economics, said investors are nervous about continuing the rally and making any assumptions about how long the recession will last.
"Any time you go up 20% from your lows, that's called a bull market, except for now," Brusca said. "People are looking at the economy, and they don't see any reason for it."
Kevin Kramer, president and chief operating officer at West End Financial Advisers, said it's too early to get bullish, even if the markets haven't seen a rally this dramatic since 1938.
"Until there are some real signs on the ground that things are really getting better, and not just the illusion of improvement, you're going remain bearish," he said.
Banks: President Obama is due to discuss the economic crisis and bank rescue plan with executives from the nation's largest banks. The meeting is due to begin at noon ET.
Some 15 CEOs are expected to attend, including the heads of JPMorgan Chase (JPM, Fortune 500)., Goldman Sachs (GS, Fortune 500) and Citigroup (C, Fortune 500).
Economy: Personal income slipped 0.2% in February, according to the Commerce Department. That is slightly more than the 0.1% decline expected by economists, according to a consensus of opinion from Briefing.com.
Personal spending rose 0.2%, matching expectations from economists surveyed by Briefing.com.
After U.S. markets open, investors will look to the University of Michigan's reading on consumer sentiment. That release is due at 10 a.m. ET.
Jobs: Tech giant Google (GOOG, Fortune 500) announced Thursday that it was cutting another 200 jobs. The search firm said the cuts would come from its sales and marketing operations.
World markets: In Asia, Japan's Nikkei finished narrowly lower. Stocks in Europe slumped in afternoon trading.
Oil and money: Oil prices dropped $2.14 a barrel to $52.20. The dollar rose versus the euro and the British pound but dropped against the yen. 
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