NEW YORK — U.S. stocks on Friday fell sharply to tally a second consecutive week of losses as a record decline in retail sales and a warning of falling mobile-phone sales hammered home the ongoing fallout of the ailing economy.
The market again showed its erratic side in the final hour of trade, briefly turning higher as utilities and consumer staples gained, but ultimately being weighed down by technology.
Finishing near session lows, the Dow Jones industrial average declined 337.94 points, or 3.8 percent, to end at 8,497.31, leaving the blue-chip index down 5 percent for the week.
All but two of the blue-chip index’s 30 components closed in the red, with the larger losses tallied by Home Depot Inc., down 7.6 percent, semiconductor giant Intel Corp., off 7.7 percent, and JPMorgan Chase, off 7.3 percent.
Citigroup Inc. shares gained nearly 1 percent amid reports the bank is expected to slash at least 10,000 jobs across the globe.
General Motors Corp. shares climbed 2 percent as debate continues over whether the government should step in and prevent the country’s biggest automaker from possible bankruptcy.
One equity manager questioned GM’s viability, regardless of whether federal funds come into play.
“Even if they are given some capital, it’s a Band-Aid. The Japanese and the Germans have much better business models and products. The free market should determine who makes the best cars, and the consumers should determine who survives,” said Harry Rady, CEO of Rady Asset Management.
Some of the workers impacted by the decline of the U.S. auto industry would be absorbed by foreign automakers with domestic plants, said Rady.
The S&P 500 fell 38 points, or 4.2 percent, to 873.29, leaving it down 6.2 percent from last Friday’s close.
Consumer discretionary, financials and energy fronted losses among the broader market index’s 10 industry groups.
Oil futures declined nearly 7 percent for the week, with crude for December delivery losing $1.2 to close at $57.04 a barrel.
The Nasdaq Composite lost 79.85 points, or 5 percent, to 1,516.85, with the technology-heavy index slammed after Nokia warned that cellphone sales across the industry will fall next year, and Sun Microsystems Inc. said it would shed as many as 6,000 workers, or up to 18 percent of its workforce. Shares of Sun rose 1 percent.
The Nasdaq Composite index shed 7.9 percent for the week.
The Commerce Department estimated U.S. retail sales fell a record 2.8 percent last month, worse than the 2.3 percent expected by economists surveyed by MarketWatch.
Illustrating the government report were results from retailers that included J.C. Penney and Nordstrom Inc.
