U.S. stocks fell for the first day in five on concern that record-high oil prices will hurt consumer spending and corporate profits. Shares of retailers such as Gap and Limited Brands declined.
"When you see oil pop like this, it has a direct impact on both inflation and corporate profits," said Scott Wren, senior equity strategist at A.G. Edwards & Sons in St. Louis. Those factors "drive stock prices over the long haul."
Investors were also disappointed by an index of leading U.S. economic indicators, which fell more than expected, and by a report that showed Philadelphia-area manufacturing expanded at a slower pace this month, signaling that rising energy prices are keeping growth from accelerating.
The Standard & Poor's 500-stock index fell 3.94, or 0.4 percent, to 1091.23. The Dow Jones industrial average shed 42.33, or 0.4 percent, to 10,040.82. The Nasdaq composite index dropped 11.48, or 0.6 percent, to 1819.89.
Crude climbed 3 percent to $48.70 a barrel at the close of floor trading on the New York Mercantile Exchange. The increase reflects concern that Iraqi exports will fall further because of clashes in southern Iraq.
Gap, the biggest U.S. clothing chain, fell 71 cents, to $20.15. After the market closed, the company reported second-quarter profit fell to 21 cents a share from 22 cents a year ago. Shares rose to $20.34 in extended trading. Limited Brands dropped 25 cents, to $20. The No. 2 U.S. clothing retailer said August sales at stores open at least a year are below the company's forecast.
Google rose $15.34, or 18 percent, to $100.33 in its debut on the Nasdaq Stock Market. Yahoo, Google's biggest competitor, shed 37 cents, to $28.11. EBay, the world's biggest online auctioneer, slipped 23 cents, to $79.68.
Computer-related shares failed to get a boost from Google, as some investors say prices remain too high after last year's 50 percent jump in the Nasdaq. Synopsys, which makes software to design computer chips, fell $6.63, to $14.65. The company said it expects fiscal 2004 earnings to be lower than its previous forecast.
CACI International jumped $5.63, or 13.8 percent, to $46.55. The supplier of interrogators to the Army said fourth-quarter earnings exceeded the company's previous forecast.
* The New York Stock Exchange composite index fell 14.10, to 6372.63; the American Stock Exchange index rose 5.29, to 1221.95; and the Russell 2000 index of smaller-company stocks fell 4.17, to 537.44.
* Declining issues outnumbered advancing ones by 5 to 4 on the NYSE, where trading volume fell to 1.25 billion shares, from 1.28 billion on Wednesday. On the Nasdaq Stock Market, decliners outnumbered advancers by 3 to 2 and volume totaled 1.4 billion, down from 1.54 billion.
* The price of the Treasury's 10-year note rose $2.19 per $1,000 invested, and its yield fell to 4.22 percent, from 4.24 percent on Wednesday.
* The dollar fell against the Japanese yen and the euro. In late New York trading, a dollar bought 109.32 yen, down from 109.34 late Wednesday, and a euro bought $1.2367, up from $1.2324.
* Light, sweet crude oil for September delivery settled at $48.70, up $1.43, on the New York Mercantile Exchange.
* Gold for current delivery rose to $407.10 a troy ounce, from $404.30 on Wednesday, on the New York Mercantile Exchange's Commodity Exchange.