US stocks fell on Friday after the price of oil hit a record and consumer sentiment data came in surprisingly weak, reviving concerns over spending. The unease about the state of the consumer outweighed earlier optimism following a surprise rise in US housing starts and stronger-than-expected earnings from retailers Nordstrom and Abercrombie & Fitch.
The price of oil shot to a record high near $128 a barrel after Goldman Sachs, the most active investment bank in energy markets, sharply raised its price forecast for the second half of 2008. "The obvious impact of higher energy prices is that consumers have less disposable income and their confidence drops," said Joe Battipaglia, market strategist at Stifel Nicolaus in Yardley, Pennsylvania.
The Dow Jones industrial average fell 86.96 points, or 0.67 percent, to 12,905.70. The Standard & Poor's 500 Index declined 7.30 points, or 0.51 percent, to 1,416.27. The Nasdaq Composite Index lost 21.54 points, or 0.85 percent, to 2,512.19.
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