U.S. stocks slumped on Friday after Bank of America, Citigroup and bellwether GE reported disappointing revenues and the consumer mood darkened on resurgent fears about the economy.
Conglomerate General Electric Co , Bank of America Corp and Citigroup Inc reported second-quarter earnings that beat expectations, but the stocks slid after revenues fell from the prior year. The two banks also posted profit declines.
GE shares fell 3 percent to $14.80, while Bank of America slumped 6.1 percent to $14.44, and Citigroup lost 3.6 percent to $4.01.
We're at a point where the economy is supposed to be getting stronger, but companies are finding it hard to do about-faces in their revenue, said Bruce Zaro, chief technical analyst at Delta Global Advisors in Boston.
A reading on consumer sentiment dropped to its lowest level in 11 months, while consumer prices fell for a third straight month in June, heightening concerns about deflation.
The trend on CPI lends itself to a deflationary camp, and that's worrisome, Zaro said. There's general suspicion about where the economy is headed, and that worries me since the psychology is likely to be dampened for investors.
The Dow Jones industrial average <.DJI> was down 150.92 points, or 1.46 percent, at 10,208.39. The Standard & Poor's 500 Index <.SPX> dropped 17.29 points, or 1.58 percent, at 1,079.19. The Nasdaq Composite Index <.IXIC> sagged 36.07 points, or 1.60 percent, at 2,213.01.
The three major stock indexes have risen seven of the past eight sessions as a number of major companies, including Intel Corp and Alcoa Inc reported strong results.
But closely watched technology giant Google Inc was among the drags as earnings missed expectations for the first time in two years. The stock was down 5.6 percent to $466.30.
On the upside, Goldman Sachs Group Inc climbed 3.2 percent to $149.99 a day after it settled a U.S. civil case with the Securities and Exchange Commission.
The U.S. Congress approved the broadest overhaul of financial rules since the Great Depression on Thursday and sent it to U.S. President Barack Obama to sign into law.
(Editing by Jeffrey Benkoe)