NEW YORK — Stocks fell Thursday after disappointing forecasts from retailers and concern about the government’s financial-overhaul package.
The Dow Jones industrial average lost 146 points after edging higher Wednesday. Broader indexes dropped for a fourth straight day.
Downbeat forecasts from retailers raised concerns that high unemployment and weak consumer spending would stall an economic rebound. Athletic-apparel maker Nike Inc. dropped 4 percent after saying higher costs could hurt earnings. Bed Bath & Beyond fell 2.4 percent after the home-goods retailer’s second-quarter earnings forecast missed expectations.
Dell Inc. lost 6.4 percent after the computer maker’s fiscal year forecast failed to top expectations, as some analysts had hoped.
Meanwhile, financial stocks fell after Congress continued working on a bill to overhaul regulation of the industry.
Traders were concerned that some provisions of the bill would cut into bank profits. Large banks were lobbying to strike a proposal that would make the industry cover costs to dismantle the mortgage giants Fannie Mae, the Federal National Mortgage Association, and Freddie Mac, the Federal Home Loan Mortgage Corp. Bank of America Corp. dropped 2.7 percent, and JPMorgan Chase & Co. lost 2.2 percent.
Stocks of health-care and consumer products companies rose, another sign that investors are anxious and looking for investments considered reliable in a weak economy.
Economic news didn’t help. The government said initial claims for unemployment benefits fell last week but remained above the level that would signal employers are looking to hire. A second report indicated that orders for durable goods fell last month for the first time in six months.
The Dow fell 145.64, or 1.4 percent, to 10,152.80. The Standard & Poor’s 500 index fell 18.35, or 1.7 percent, to 1,073.69. It was the first four day drop for the S&P 500 index since early May. The Nasdaq composite index fell 36.81, 1.6 percent, to 2,217.42.
Interest rates were mixed in the Treasury market. The yield on the benchmark 10-year Treasury note rose to 3.14 percent from 3.12 percent late Wednesday. The yield had fallen to a 13-month low of 3.07 percent.
Crude oil rose 16 cents to settle at $76.51 a barrel on the New York Mercantile Exchange.
The market’s moves were also being driven by traders preparing for changes today to some of the stocks that make up the Russell 2000 index of smaller companies. The Russell 2000 fell 11.08, or 1.7 percent, to 633.17.
Among stocks, Nike fell $2.89, or 4 percent, to $69.63, while Bed Bath & Beyond fell 89 cents, or 2.4 percent, to $35.74.
Bank of America fell 41 cents, or 2.7 percent, to $15.02, and JPMorgan dropped 86 cents, or 2.2 percent, to $38.03.
Rising stocks included health-care and consumer products maker Johnson & Johnson, up 61 cents at $59.60.
More than three stocks fell for every one that rose on the New York Stock Exchange, where consolidated volume was 4.9 billion shares, compared with 4.6 billion Wednesday.
Business, Pages 28 on 06/25/2010