A weaker-than-expected consumer confidence report gave Wall Street another reason to sell today, intensifying a pullback that began with investors cashing in recent profits.
By midday in New York, the Dow Jones industrial average was down 111.61 points or 1.1 per cent, at 9,871.14.
Broader stock indicators also fell. The Standard & Poor's 500 index was off 10.58, or 0.9 per cent, at 1,146.84, while the Nasdaq composite index lost 20.28, or 1.0 percent, to 1,920.95.
US stocks were already in a mild retreat this morning when the Conference Board reported its index of consumer confidence fell to 82.2 in November from 85.3 the previous month. Analysts had been predicting 86.5.
Consumer confidence is closely watched, since consumer spending accounts for two-thirds of the US economy.
The data gave weight to many investors' concerns that the market's recent recovery, in which the major indexes returned to their pre-September 11th levels, was premature since corporate profits and other growth indicators remain weak.
"I don't think it takes a whole lot right now to turn sentiment more toward caution than being aggressive," said Mr Richard A. Dickson, technical analyst at Hilliard Lyons.
"With the extent of the rally we've had, it doesn't take a lot for people to say it's not a bad idea to book some profits," he added
Other fluctuations were related to more company-specific news. Nokia dropped $1.62 to $23.62 after the telecommunications company said sales in the first quarter of 2002 will likely fall below the first quarter of 2001, although 2002 sales should increase by 15 per cent.
AP