Consumers slowed spending growth in September to the weakest performance in three months. The Commerce Department reported that consumer spending rose by just 0.3 per cent.
Initial jobs claims came in at 327,000, a bit less than forecasts and the previous week's reading. But the biggest economic reading is due before the bell on Friday. We'll bring you the details from the October monthly employment report on Monday.
Turning to the markets; Dow Jones Industrials plummeted 362 points hitting 13,568; the S&P500 declined 41 points to 1,508, and the NASDAQ dropped 64 points to 2,795.
So let's take a look at what moved the markets; the big bank news came from Citigroup. Shares were down after Credit Suisse and CIBC World Markets downgraded the largest US bank to ?sector underperformer? because of capital concerns. Shares in the largest US bank were down 6.89% to $38.51?a four and a half year low. One CIBC analyst said the bank may have to sell assets, raise capital or cut its dividend to make up for a capital shortfall of $30 billion. Bank of America shares also dropped after being downgraded.
Oil giant Exxon Mobil shares fell 3.79% to $88.50 weighing on the overall market, after its quarterly earnings dropped by 10 per cent. The company blamed dropping gasoline profits and lower natural gas prices for cutting into surging oil prices. Net income at the world's largest publicly traded company fell to $9.41 billion.
In other earnings news, shares in Eastman Kodak were down 3.14% to $27.76 despite the company posting a quarterly profit and announcing major restructuring may cost less than it had anticipated. Digital camera sales drove the results, which turned things around from a year earlier loss. Despite Thursday's loss, the stock has risen about 11 per cent so far this year.
And finally, shares in Crocs tanked 36.13% to $47.74 after it announced quarterly profit more than doubled, but also revealed a flat outlook. Crocs shares also fell last month on complaints that the company's signature shoes, originally meant for boating or outdoors, are prone to catch on escalators and have caused injuries. Keep in mind the company's shares had risen more than 200 per cent this year.
To the best and worst performers in the Nasdaq Top 100.
Dentsply International was the best performer after it posted positive earnings results. It was up 7.14% to $44.44. Henry Schein and Express Scripts also helped lift the NASDAQ on the overwhelmingly negative day.
Sirius Satellite radio dropped 7.14% to $3.12. Garmin and XM Satellite radio were also in the red.
