By Kate Gibson
U.S. stocks retreated on Monday, with the consumer-discretionary and energy sectors hit hardest after Walgreen Co., the nation's largest drugstore chain, reported disappointing results and Toyota Motor Corp. forecast a loss for the year.
"If Toyota is going to keep having trouble, and they're talking about laying off workers and cutting back sales, how are the domestic automakers going to stay afloat?" asked Craig Rappaport, a wealth manager with Janney Montgomery Scott. Listen to more.
Off session lows that had the Dow Jones Industrial Average (DJI) down more than 200 points, the blue-chip index finished at 8,519.69, off 59.42 points, or 0.7%.
Of the Dow's 30 components, 19 closed in the red, with the heaviest losses tallied by General Motors Corp. (GM) -- shares of which surrendered 21.6%.
Shares of other automakers also were pounded, with Ford Motor Co. (F) sliding 12.2% and the U.S.-listed shares of Japanese giant Toyota (TM) declining 5.4%.
Toyota forecast an operating loss for the current year, which would be a first for the Japanese automaker since World War II. Toyota blamed a slump in global demand and a sharp appreciation in the yen against other currencies.
The S&P 500 Index (SPX) fell 16.25 points, or 1.8%, to 871.63, with energy, consumer discretionary and financials pacing the sectors' retreat. All of the index's 10 industry groups slipped into the red.
Under pressure among consumer-discretionary shares, Jones Apparel Group (JNY) fell 15.4%. .
Shares of Walgreen (WAG) declined 4.2%. The company reported first-quarter profit fell 10%.
Internet-tracking firm comScore Inc. said that spending by online shoppers fell 1% last week, with last-minute deals for free shipping before the holidays seemingly not enough to spur Web sales. .
Utilities fared the best on the S&P, with Pinnacle West Capital Corp. (PNW) advancing 2.2%.
Financial stocks also faltered as investors assessed a report that commercial real-estate developers are seeking to tap into federal funds. .
The technology-laden Nasdaq Composite Index (RIXF) fell 31.97 points, or 2%, to 1,532.35 with tech stocks dipping even as shares of Palm Inc. (PALM) jumped 22.5% on news the smart-phone maker would get an additional $100 million in private-equity investment.
Light trade
Volume on the New York Stock Exchange exceeded 1.2 billion, and decliners outpaced advancers more than 2 to 1. On the Nasdaq, more than 665 million shares traded, and decliners offset advancers, also by a more than 2-to-1 ratio.
Crude futures tumbled nearly 6% to below $40 a barrel as demand concerns outweighed thinking that the Organization of Petroleum Exporting Countries might further cut cartel members' production quotas. Crude for February delivery ended down $2.45 at $39.91 a barrel on the New York Mercantile Exchange. .
Gold futures rose for the first session in three, with gold for February delivery closing up $9.80 at $847.20 an ounce. .
Treasury prices fell, sending yields higher for a second straight session, after the government held the first of two record-size auctions of short-term securities. .
In international markets, Japan's Nikkei 225 Average rose 1.6%, while the pan-European Dow Jones Stoxx 600 index fell 1.6% to 193.32..
On Friday, U.S. stocks pulled mostly higher for another week after the White House stepped in to rescue automakers.
The Dow industrials closed at 8,579.11, off 25.88 points, or 0.3%, to finish the week down 0.3%.
The S&P 500 advanced 2.32 points, or 0.3%, to end at 887.6, up 0.9% on the week. The Nasdaq rose 11.95 points, or 0.8%, to 1,564.32, giving it a 1.5% weekly gain.
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Publié le 22 Décembre 2008 Copyright © 2008 Dowjones