By  on October 19, 2009

Retail stocks and the Dow Jones Industrial Average rose 1.3 percent last week, but the Dow, which topped the 10,000 mark for the first time in more than a year Wednesday, slunk back to once again close in four-digit territory Friday.

The S&P Retail Index ended the week at 393.03, and the Dow, after peaking at 10,087.40 Thursday, ended at 9,995.91.

In a preliminary reading Friday, the Reuters/University of Michigan Index of Consumer Sentiment fell unexpectedly to 69.4 for October, down from 73.5 in September.

“The survey indicates that consumers have become more confident about the overall economy, but they are still very worried about their own financial conditions,” said Nigel Gault, chief U.S. economist at IHS Global Insight. “The implication is that…consumers will not be a driving force in this recovery.”

Banks are also worried about shoppers’ balance sheets.

On Friday, Bank of America Corp. said it had $11.71 billion set aside to cover bad loans, an increase of $5.26 billion from a year earlier as borrowers struggle with payments.

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