Stocks slide in early trade

Wall Street retreats on weak retail sales report and worries about Lehman Brothers future. The approach of Hurricane Ike weighs on oil.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all RSS FEEDS (close)
By Aaron Smith, staff writer

NEW YORK ( -- Stocks slumped at the open Friday as investors mulled a surprise drop in retail sales and Lehman Brothers' race to sell all or part of itself within the next few days.

Investors also considered a rise in oil prices as as Hurricane Ike churned towards Texas.

The Dow Jones industrial average (INDU), the Standard & Poor's 500 (SPX) index the Nasdaq composite (COMP) all slipped in the early going.

On Thursday, the Dow climbed nearly 1.5% and the Nasdaq jumped 1.3% amid talk that Lehman was shopping for potential suitors.

Lehman: Lehman Brothers (LEH, Fortune 500) was the talk of Wall Street amid reports that the venerable brokerage is being shopped around.

The Wall Street Journal and Washington Post reported that the Treasury Department and Federal Reserve have been working with Lehman to help solve its problems, including helping to find potential buyers.

But both papers said the government does not want to structure a bailout for Lehman similar to the ones put together for Bear Stearns in March and mortgage financers Fannie Mae and Freddie Mac earlier this week.

Lehman shares, which fell more than 40% Thursday, were 14% lower in early trading Friday.

Ike: Hurricane Ike continued to churn through the Gulf of Mexico, where it's projected to smash into the Texas coast by early Saturday.

Oil prices rose 75 cents a barrel to $101.62 over concerns that the storm could threaten the offshore oil and natural gas infrastructure.

Economy: Wholesale prices fell more than expected in August due to the decline in energy prices. Producer prices fell 0.9%, more of a loss than the 0.5% decline expected by economists.

Excluding volatile food and energy prices, prices rose 0.2%, in line with forecasts.

Retail sales fell 0.3% in August, surprising economists who expected a 0.3% increase.

Markets: European and Asian markets were up. The dollar slipped versus the euro and the British pound, but rose against the yen.  To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.