The S&P Retail Index and the three major U.S. indices sustained losses of more than 1 percent on Friday, and all but the S&P 500 managed to register gains for the week.
This story first appeared in the April 19, 2010 issue of WWD. Subscribe Today.
Spooked by the Securities and Exchange Commission’s fraud charges against Goldman Sachs for its role in the packaging of subprime mortgage securities, retail stocks followed the rest of the market downward on Friday. The S&P Retail Index was off 1.4 percent to 475.38, breaking a six-session winning streak but finishing ahead 1.5 percent for the week and 15.6 percent for the year-to-date. It’s now advanced nine of the last 10 weeks.
Investors were also troubled by the Reuters/University of Michigan report showing a drop in consumer sentiment during the first half of April, coupled with a decline in consumers’ views of current economic conditions. Disappointing first-quarter earnings in the technical sector, including results from Google Inc., added to their anxiety.
After hitting the 11,000 mark on Monday, the Dow Jones Industrial Average spent some time below it on Friday before rebounding and finishing down 1.1 percent for day at 11,018.66, up 0.2 percent for the week and 5.7 percent in 2010. The S&P 500 wasn’t able to get back over the 1,200 mark, however, with a 1.6 percent decline to 1,192.13 on Friday, leaving it 0.2 percent below its finish on April 9. The Nasdaq Composite finished the week up 1.1 percent despite a 1.4 percent drop on Friday to 2,481.26.
Of 172 stocks monitored by WWD, 111 finished the week with gains and 57 with declines while four were flat.
Earlier on Friday, European and Asian markets finished the week with losses as major markets moved down. London’s FTSE 100 retreated 1.4 percent to end the week at 5,743.96, down 0.5 percent, while in Paris the CAC 400 was off 1.9 percent, leaving it with a 1.6 percent decline for the week at 3,986.63. Tokyo’s Nikkei 225, Hong Kong’s Hang Seng Index and Shanghai’s SSE Composite Index lost 1.5 percent, 1.3 percent and 1.1 percent, respectively, leaving them with weekly declines of 0.9 percent, 1.6 percent and 0.5 percent.