US shares retreated on Friday and the Dow Jones industrial average suffered its worst slide since July, on concerns that the economic recovery won't be strong enough to sustain the recent share rally, while financials stocks sank on renewed worries about Citigroup's balance sheet.
Overall for the month of October – the Dow was unchanged, while the S&P500 and the Nasdaq were slightly lower.
Friday’s figures show that the Dow plunged 250 points to 9,713. The S&P500 Index fell 30 points to 1,036 and the NASDAQ closed 52 points lower to 2,045.
In economic news: Worries about job losses is having an impact on consumer spending. New figures released by the Commerce Department showed that consumer spending fell 0.5% in September after a 1.4% jump in August.
The Reuters/University of Michigan index of consumer sentiment also decreased to 70.6 in October from 73.5 the month before.
In company news: Citigroup (NYSE:C) shares fell 5.1% to $4.09, after accounting expert Robert Willens, said the bank was likely to have a $10 billion fourth-quarter charge on its deferred tax assets. Aon (NYSE:AOC) shares lost 6.51%, the most since May the 1st, to $38.51. The world’s largest insurance broker posted a 25% fall in profit as the company spent $99 million on costs tied to its restructuring program and its acquisition of Benfield Group.
Estee Lauder (NYSE:EL) shares gained 3.31% to $42.50. The maker of Clinique cosmetics reported first-quarter profit that topped analysts’ estimates after reducing expenses.
Metlife (NYSE:MET) shares fell 7.63%, the most since May 13, to $34.03. The biggest US life insurer posted its third straight loss as results were weighed down by the latest bond market rally that’s helped restore profits at smaller rivals.
In the NASDAQ Top 100: Direct TV was the best performer, inching up 0.61% to $26.30. Followed by Cephalon and losing the smallest amount was Warner Chilcott. The biggest drag on the NASDAQ was Expedia, it’s down 6.71% to $22.67. Maxim Integrated Products and Foster Wheeler Group also finished lower.
