NEW YORK — U.S. stock indexes on Friday fell for a third day, with two of the three major indexes recording weekly losses, as a warning from J.C. Penny Co. weighed and economic data spurred further signs of a recession.
“Personal income and consumption data point toward lower inflation and higher growth. Despite this one bit of good news, we continue to expect tough times ahead,” said Lehman Brothers analyst Drew Matus.
After trading modestly higher for much of the session, equity indexes erased their gains, with the Dow Jones industrial average declining 86.06 points to 12,216.40, off 1.2 percent from the previous week’s close.
Of the blue chip’s 30 components, 22 posted losses, with financials including JPMorgan Chase & Co. erasing the bulk of earlier gains to close down nearly 0.4 percent.
Other financials on the Dow also fell, with Citigroup Inc. off 4.4 percent and American Express Co. down 3.8 percent.
The S&P 500 shed 10.54 points to 1,315.22, down 1.1 percent from its standing a week ago, while the technology-laden Nasdaq composite dropped 19.65 points to 2,261.18, giving it a mild 0.1 percent bump up from where it stood as the week began.
Investors initially bypassed a University of Michigan/Reuters report of consumer confidence falling to its lowest level since 1992, with the survey’s director citing the data as evidence “a recession has occurred.” Ahead of Wall Street’s open, stock futures held early gains as the government reported flat consumer spending in February, and core inflation within the Federal Reserve’s comfort zone.
“Inflation is often accelerating at the start of economic recessions before decelerating, a pattern that might be repeating,” said Tony Crescenzi, analyst at Miller Tabak & Co.
Also limiting Friday’s advance was a first-quarter profit warning from J.C. Penney Co., with the retailer’s CEO saying consumer confidence was at a “multiyear low.” The scaled-back forecast pressured retail stocks, with the S&P Retail Index off, and J.C. Penney shares down 7.5 percent.
Volume on the New York Stock Exchange topped 3.6 billion, with declining shares ahead of those advancing 2 to 1. On the Nasdaq, more than 1.7 billion shares exchanged hands, and decliners edged ahead of those advancing, also by 2 to 1.
On the New York Mercantile Exchange, crude-oil futures fell following their surge in the previous session on news that a key export oil pipeline in Iraq had been sabotaged, with crude for May delivery down $1.96 to settle at $105.62 a barrel.
Gold futures dropped sharply, as strength in the dollar weighed, with the contract for April delivery falling $18.20 to close at $930.60 an ounce.
Shares of Lehman Brothers gained 2.2 percent after Citigroup upgraded its recommendation on Lehman shares to buy from hold.
In Asia, markets closed on a broadly positive note, notching gains for the week.
