US stocks fell on Thursday after weaker-than-expected durable goods data raised concerns about the outlook for the economy and profits. Global political worries also rattled the market with news Benazir Bhutto was killed in an attack after a rally in Rawalpindi.
Financial stocks fell after a Goldman Sachs analyst said Citigroup Inc, Merrill Lynch & Co and J.P. Morgan Chase & Co may face larger fourth-quarter debt write-offs than previously expected. The analyst also said Citigroup may have to slash its dividend by 40 percent to preserve capital. Citigroup's shares fell 1.5 percent to $30.
"The weak durable goods orders is hurting stocks as it shows a weak economy, which would also impact profits," said Giri Cherukuri, head trader at OakBrook Investments LLC in Lisle, Illinois. "There is some elevated geopolitical risk with the Benazir Bhutto death, but I think that will have only a short-term negative impact on the market."
The Dow Jones industrial average was down 67.39 points, or 0.50 percent, at 13,484.30. The Standard & Poor's 500 Index was down 6.80 points, or 0.45 percent, at 1,490.86. The Nasdaq Composite Index was down 10.18 points, or 0.37 percent, at 2,714.23.
The Conference Board said its index of consumer sentiment rose to 88.6 in December from a revised 87.8 in November. The media forecast of economists polled by Reuters was for a reading of 86.5.
Student loan provider Sallie Mae fell 6.9 percent to $20.61 after the company said late Wednesday it plans to sell about $2.5 billion of stock and mandatory convertible securities to help pay off derivatives contracts that amounted to a bet that its share price would keep increasing.
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