Stocks drop at open

Wall Street retreats after previous session's big bounce. Plunging retail sales and Freddie Mac's loss are in focus.

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

What is the housing situation in your area?
  • Lots of foreclosures
  • Fairly stable
  • It's booming

NEW YORK(CNNMoney.com) -- Stocks slumped Friday as the biggest decline in retail sales on record gave investors a reason to bail out after the previous session's big rally.

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

That was in stark contrast to Wall Street's soaring performance Thursday, with the Dow surging a staggering 552 points, or 6.7%, after three down sessions. The S&P 500 index rallied 6.9% and Nasdaq composite added 6.5%.

The Thursday rally gave markets in Asia and Europe a boost. Shares in Tokyo and Hong Kong finished more than 2% higher. European shares were higher in afternoon trading; London's FTSE and Frankfurt's DAX indexes were each up about 3.9%, and Paris' CAC index was up 2.6%.

Meanwhile, leaders of the 20 most powerful countries prepared to meet in Washington this weekend to address the global financial crisis.

Retail gloom: The Commerce Department reported that October retail sales fell 2.8% from the prior month, the worst decline since this type of record-keeping began in 1992. This is worse than the 2.1% decline expected in a consensus of projections by Briefing.com.

Not including automobiles, sales declined 2.2% in October, the government said.

Java job reductions: Sun Microsystems (JAVA, Fortune 500) said it would reduce 5,000 to 6,000 jobs, or 15 to 18% of its work force, "to align its cost model with the global economic climate." Shares fell 3% in the early going.

Freddie bleeds money: The crippled mortgage giant Freddie Mac (FRE, Fortune 500) reported a massive loss of $25 billion for the third quarter and said it would have to tap into its $100 billion share of the taxpayer bailout. Shares fell 10% in the morning.

Layoffs: Citigroup (C, Fortune 500) is getting ready to hand out 10,000 pink slips in addition to the 23,000 jobs that it has already axed over the past year, according to The Wall Street Journal. Shares gained 3% in the morning.

Oil and money: Oil prices continued their downward course, slipping $1.11 to $57.13 a barrel on the New York Mercantile Exchange. The dollar slipped versus the yen but rose against the euro and the British pound. To top of page

Features
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.