By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks fell on Friday after some
initial wobbling, a day after the S&P 500 index had its best
session since Jan. 2, as investors mulled data showing a decline in
consumer confidence.
"We didn't get the pullback in May when we thought we would, so
it looks like June is giving us some of that," said Andrew
Fitzpatrick, director of investments at Hinsdale Associates
Inc.
A day after Wall Street rallied on thinking the Federal Reserve
would continue record-low interest rates, investors took a more
cautious stance on the final session of what looked to be shaking
out as a losing week.
Climbing 29 points and falling 86, the Dow Jones Industrial
Average (DJI) was lately off 72.95 points at 15,103.13.
The S&P 500 index (SPX) retreated 6.08 points to 1,630.28,
with financials pacing the losses that included eight of its 10
major sectors.
The Nasdaq Composite (RIXF) shed 15.15 points to 3,430.21.
Decliners pulled ahead of advancers on the New York Stock
Exchange, where 168 million shares traded as of 11:05 a.m. Eastern.
Composite volume surpassed 880 million.
Among the more active issues, Groupon Inc. (GRPN) jumped 14%
after the daily-deals site drew an upgrade by Deutsche Bank AG.
Smith & Wesson Holding Corp. (SWB) rose 3.8% after the gun
manufacturer reported initial earnings above expectations.
Smithfield Foods Inc.'s (SFD) shares held steady after the hog
producer reported a steep drop in net profit.
Reports Friday had the preliminary June reading of the
University of Michigan/Thomson Reuters consumer-sentiment gauge
declining from a six-year high to 82.7 from a final May reading of
84.5.
And, ahead of Wall Street's start, stock-index futures retained
mild losses after the Labor Department reported producer prices
rose 0.5% in May, the first increase in three months, and then a
separate report had U.S. industrial production unchanged in
May.
On Thursday, late-session gains kicked in after Wall Street
Journal reporter Jon Hilsenrath, considered an influential voice on
central-bank policy, said Federal Reserve Chairman Ben Bernanke
will likely choose next week's meeting to try to soothe market
fears that the central bank is headed towards the easing exit in a
hurry.
"In recent weeks, big one-day stock-market rallies have lacked
buy-side follow-through over the next few days. We need to see a
steady flow of better-than-expected economic or corporate news to
propel the stock market back to the pace of the rally seen between
November and mid-May," wrote Fred Dickson, chief investment
strategist at Davidson Companies, in emailed research.
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