The weakest consumer confidence report in 7 12 years sent stocks sharply lower today for a second straight session as Wall Street got another reminder that the economy faces a difficult recovery. Consumer confidence,
stocks fall
By Lisa Singhania
Associated PressContinued profit-taking from this month's big run-up, as well as reaction to more disappointing earnings, also contributed to the decline.
The Dow Jones industrial average fell 147.52 at 9,121.98. It was the index's worst finish in three weeks, when the Dow closed at 9,052.44 on Oct. 9. The index has now lost a total of 423 points over the past two sessions. The Standard & Poor's 500 index lost 18.51 at 1,059.79, and the Nasdaq composite index fell 32.11 to 1,667.41.
Decliners led advancers on the New York Stock Exchange, with 2,171 down, 936 up and 219 unchanged. Volume was 1.29 billion shares vs. 1.11 billion yesterday. The NYSE composite index fell 9.11 to 546.74, the American Stock Exchange composite index lost 10.32 to 826.89 and the Russell 2000 index fell 6.58 to 422.83.
The Treasury's 2-year note rose 7/32 to 100 19/32; its yield fell 12 basis points to 2.44 percent. The 10-year note rose 18/32 to 104 21/32; its yield fell 7 basis points to 4.41 percent. The 30-year bond jumped 29/32 to 102 19/32; its yield fell 6 basis points to 5.20 percent.
The losses accelerated early in the session when the Conference Board released a survey showing consumer confidence at 85.5 in October, well below the 97 recorded the previous month and the 96 that analysts were predicting. The index compares results to its base year, 1985, when it stood at 100. The October figure is the lowest since February 1994.
The extent of the decline caught market watchers by surprise and intensified concerns that consumers would spend less and already suffering businesses would see profits diminish even more.