US stocks plummeted on Friday following the worst drop in monthly US retail sales on record. The Commerce Department said retail sales slumped 2.8% in October following a 1.3% fall in September. Accelerating job losses and a worsening economy were seen as the main drivers for the cut in spending and caused a broad range of stocks to retreat.
The Dow Jones dropped 337.94 points to close at 8,497.31, the S&P 500 fell 38 points to end at 873.29. The Nasdaq tumbled 79.85 points to finish at 1,516.85.
Retailers were obviously among the biggest fallers on the day. Department store operator JC Penney and clothing retailer Abercrombie & Fitch compounded the grim economic data, giving disappointing outlooks and saying shoppers look like they will be cutting spending through the holiday season. JC Penney plunged 10.4% while Abercrombie sank 20.7%.
Boeing descended 4.9% after announcing that it has delayed its latest version of the 747 jumbo jet by several months.
In the financial sector, Freddie Mac reported a massive $25.3 billion quarterly loss and said it will start chipping away at the $100 billion in taxpayer funds set aside for its bailout. Shares finished 8.2% lower.
In the tech sector, Sun Microsystems made slight headway after saying that it will cut up 18% of its workforce, around 6,000 jobs, as a cost cutting measure. Shares in the computer networking company rose 1%. Apple Inc caused the biggest weight on the Nasdaq, sliding 6.4%.
US light crude oil for December delivery slipped $1.20 to end at $57.04 a barrel. COMEX gold for December delivery surged $42.50 higher to settle at $742.50 an ounce. Treasury prices rallied, lowering the yield on the 10 year note to 3.72% from 3.86%.
The Nikkei rose 60.19 points to close at 8,522.58 this morning. Drug and rail companies gained after the nation's slip into recession lifted demand for companies relatively insulated against a slowdown.
The Hang Seng edged 13.13 points lower to 13,529.53 this morning. Financial companies were lower after the city entered its first recession since the outbreak of a deadly epidemic in 2003. Hong Kong Exchanges & Clearing Ltd, which run's the city's equities market, lost 7.6% after Morgan Stanley slashed its price target by 49%.
The FTSE 100 is currently 3.45 points lower at 4,229.52. Commodity producers fall after crude prices declined for a second day and copper dropped. Royal Dutch Shell falls 2%, while BHP Billiton loses 2.2%. Tesco is 2.3% lower after JPMorgan Chase & Co recommended selling the shares.