(Updates to midday, changes byline)
By Jennifer Coogan
NEW YORK, Feb 15 (Reuters) - U.S. stocks fell on Friday on
worries about consumer spending after electronics retailer Best
Buy <BBY.N> warned that shopper traffic dropped off right after
the holidays and a key measure of consumer sentiment fell to a
16-year low.
Best Buy's warning dragged on other retailers' shares.
Shares of rival electronics retailers Circuit City <CC.N> and
RadioShack both fell more than 4 percent. An index of retail
stocks <.RLX> was down 1.1 percent.
The Reuters/University of Michigan Surveys of Consumers
index of consumer sentiment for February dropped to the lowest
level since February 1992, a level that has previously signaled
recession. Data showing a softness in manufacturing in New York
State added to the negative tone, along with persistent worries
about the stability of struggling bond insurers. For details,
see [].
Shares of companies perceived as economic bellwethers, such
as Caterpillar Inc <CAT.N> and United Technology <UTX.N>, were
among the top drags on the Dow.
"We're extending yesterday's decline due to some poor
economic reports," said Todd Salamone, vice president of
research at Schaeffer's Investment Research in Cincinnati. "We
came out of the gate selling and haven't had a catalyst to go
higher since those reports came out."
The Dow Jones industrial average <> was down 74.21
points, or 0.60 percent, at 12,302.77. The Standard & Poor's
500 Index <.SPX> was down 8.82 points, or 0.65 percent, at
1,340.04. The Nasdaq Composite Index <> was down 20.94
points, or 0.90 percent, at 2,311.60.
Best Buy's stock fell 3.7 percent $44.06. Circuit City
shares were down 5.2 percent to $4.78. RadioShack shares fell
4.3 percent to $15.02. [].
Shares of United Technologies, whose products range from
Otis elevators to Black Hawk military helicopters, fell 1.9
percent to $71.30, while heavy equipment maker Caterpillar fell
1.3 percent to $69.54.
In the latest development with struggling bond insurers,
FGIC Corp, whose main unit has lost its top credit ratings from
all three agencies, told New York regulators it wants to be
split into two companies, New York Insurance Superintendent
Eric Dinallo said on Friday.
Shares of other bond insurers lost ground. MBIA Inc <MBI.N>
fell 6.2 percent to $11.84, while Ambac Financial <ABK.N> fell
5 percent to $10.
Kraft Foods Inc <KFT.N> shares were trading higher after
billionaire investor Warren Buffett said he had taken a stake
in the company.
Berkshire Hathaway Inc <BRKa.N><BRKb.N>, the holding
company controlled by Buffett, said on Thursday it has taken an
8.6 percent stake in Kraft, whose shares rose 6.5 percent to
$31.20.
U.S. financial markets will be closed on Monday for the
Presidents Day holiday, and the bond market is expected to
close early on Friday.
(Editing by Leslie Adler)
