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1st LD Writethru: U.S. stocks retreat further on soft data, weak earnings

Xinhua, November 14, 2015 Adjust font size:

U.S. stocks declined for a third straight session Friday, as investors meditated on generally downbeat economic data and disappointing earnings reports.

The Dow Jones Industrial Average fell 202.83 points, or 1.16 percent, to 17,245.24. The S&P 500 dropped 22.93 points, or 1.12 percent, to 2,023.04. The Nasdaq Composite Index tumbled 77.20 points, or 1.54 percent, to 4,927.88.

The U.S. Producer Price Index (PPI) for final demand decreased 0.4 percent in October, seasonally adjusted, missing market consensus of a 0.2-percent gain, the Labor Department reported Friday.

On an unadjusted basis, the final demand index fell 1.6 percent for the 12 months ended in October, a record 12-month decline for this index, which was introduced in November 2009.

Advance estimates of U.S. retail and food services sales for October increased 0.1 percent from the previous month to 447.3 billion U.S. dollars, also below market expectations, said the U.S. Commerce Department Friday.

Total sales for the August 2015 through October 2015 period were up 2.0 percent from the same period a year ago.

"Retail sales excluding the impact of gasoline sales have failed to rise meaningfully for the last three months, even as lower energy costs should leave more dollars in consumer hands," said Jay Morelock, an economist at FTN Financial, in a note.

Meanwhile, the preliminary reading of consumer sentiment index published by Thomson Reuters/ University of Michigan came in at 93.1 for November, above market estimates of 92.0.

Dampening investor sentiment, quarterly earnings from notable companies also came out negative Friday.

Shares of Cisco shed 5.82 percent to 26.21 dollars apiece after the company lowered its guidance citing weaker global economic growth and the strong U.S. dollar, although the network equipment maker delivered better-than-expected quarterly results.

Shares of Nordstrom slumped 14.98 percent to 53.96 dollars apiece on disappointing third-quarter results. The U.S. retailer also cut its outlook for the year.

In a weekly basis, all three major indices witnessed big losses, snapping a six-week winning streak, with the Dow, the S&P 500 and the Nasdaq down 3.7 percent, 3.6 percent and 4.3 percent, respectively. Endit