Stocks extended losses on Tuesday as worries about consumer spending were stoked by an unexpected drop in retail sales and investors sold off financial shares.

Sales at U.S. retailers fell 1.1 percent in March, snapping two months of increases and hitting a wide range of stocks such as Macy's Inc , which slumped 7.2 percent.

Bank shares tumbled after Goldman Sachs posted a much higher-than-expected first-quarter profit after Monday's close, a day early, but said it planned a $5 billion sale of common stock to help pay back government funds. Goldman's stock slid 8.7 8 percent.

The Dow Jones industrial average <.DJI> fell 139.22 points, or 1.73 percent, to 7,918.59. The Standard & Poor's 500 Index <.SPX> dropped 16.74 points, or 1.95 percent, to 841.99, near a session low at 840.75. The Nasdaq Composite Index <.IXIC> tumbled 31.22 points, or 1.89 percent, to 1,622.09.

(Reporting by Leah Schnurr; Editing by Jan Paschal)