U.S. stocks fell more than 1 percent on Friday as investors retreated from a recent rally after data showing weak consumer sentiment fueled doubts about an economic recovery.
Shares of blue-chip Boeing Co
People have significant doubt about how enduring any recovery is going to be without the consumer, said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.
The Dow Jones industrial average <.DJI> dropped 162.64 points, or 1.73 percent, to 9,235.55. The Standard & Poor's 500 Index <.SPX> dropped 17.47 points, or 1.73 percent, to 995.26. The Nasdaq Composite Index <.IXIC> dropped 38.63 points, or 1.92 percent, to 1,970.72.
The Reuters/University of Michigan Surveys of Consumers showing consumer confidence fell in August to its lowest since March underscored Thursday's weak retail sales data, Tim Ghriskey, chief investment officer at Solaris Asset Management in Bedford Hills in New York, said..
Boeing dropped 4.5 percent to $44.50 after it said an Italian supplier stopped production on two sections of its 787 Dreamliner after structural flaws were found on fuselages.
Major retailer JC Penney Inc
Other major stocks dragging down the market included aluminum company Alcoa Inc
The weak consumer sentiment report overshadowed other data on Friday that showed U.S. industrial production rose more than expected in July, beating the market forecast.
But the S&P 500 is still up about 47.5 percent from its closing-low set on March 9.
(Additional reporting by Chuck Mikolajczak; Editing by Kenneth Barry)