US close: Stocks drop amid Fed speak, mixed economic data

The Dow Jones Industrial Average was down 202.83 points to 17,245.24, while the S&P 500 and the Nasdaq were down 22.93 and 77.20 points, respectively.

The benchmark S&P 500 ended the week 3.6% lower, with the Chicago Board of Trade's VIX volatility index advancing 9.31% to end at 20.08.

By industry groups, the largest losses were seen in Apparel (-5.65%), Clothing (-5.13%) and Specialty retailers (-4.36%).

Hawkish Fed speak

Speaking on monetary policy on Friday afternoon, the president of the US Federal Reserve bank of Cleveland, Loreta Mester, said the labour market will continue to improve and workers’ compensation will accelerate.

The US economy can handle a rate increase and the longer interest rates remain at zero the greater the risks to financial stability, Mester said.

Retail sales miss expectations

On the macroeconomic front, retail sales rose by less-than-expected last month.

According to data released by the US Commerce Department, retail sales grew 0.1% last month compared with a 0.1% gain in the previous month falling short of analysts’ expectations for a 0.3% rise.

"October retail sales report was a little bit weaker than expected, but doesn't change our view that fourth-quarter GDP growth will be a respectable 2.5% annualised," said Steve Murphy, US economist at Capital Economics.

Factory gate prices fell 0.4% over the month in October (consensus: 0.2%).

"October is the month that the PPI switches from one year’s model to the next, and the estimated price and quality changes often cause big jumps either up or down each October."

Consumer confidence improved in November, according to a preliminary reading for the University of Michigan's index, gaining to 93.1 (consensus: 91.0), up from a print of 90 for the month before.

Nordstrom crashes after issuing profit warning

In company news, fashion accessories designer Fossil slumped 41% after the company’s quarterly missed estimates.

Nordstrom tumbled 15% after the fashion retailer cut its profit forecast on the back of weak quarterly earnings.

Networking equipment Cisco Systems fell 5.82% after its revenue and profit outlook for the current quarter fell short of analysts’ expectations,

PayPal slid 2.92%, following a Wall Street Journal report on Thursday suggested that Apple was in talks with US banks to develop a rival payment service.

Going the other way, Yum Brands, the owner of Pizza Hut and KFC, rose 3.5% after its like-for-like sales in China rose between 5% and 6% in September.

US-listed shares of Syngenta jumped 8.14% after the pesticide maker rejected an initial $42bn takeover offer from China National Chemical, according to a Bloomberg report.

Elsewhere, Asian equity markets ended the week on a downbeat note, as investors in the region remained jittery over what looks a probable December rate hike by the Fed, while European stocks pulled back.

Front month West Texas crude futures finished the session 2.44% lower at $40.73 per barrel in NYMEX trading.

S&P 500 - Risers
Mylan Inc. (MYL) $48.78 +12.92%
Airgas Inc. (ARG) $101.82 +7.64%
Southwestern Energy Co. (SWN) $11.02 +6.99%
Range Resources Corp. (RRC) $31.72 +6.95%
Vertex Pharmaceuticals Inc. (VRTX) $123.05 +4.90%
Applied Materials Inc. (AMAT) $17.24 +4.30%
CONSOL Energy Inc. (CNX) $7.40 +3.93%
Yum! Brands Inc. (YUM) $69.48 +3.52%
Endo International Plc (ENDP) $57.99 +3.37%
Rowan Companies plc (RDC) $19.61 +3.10%

S&P 500 - Fallers
Fossil Group Inc (FOSL) $32.39 -36.50%
GameStop Corp. (GME) $37.18 -16.51%
Nordstrom Inc. (JWN) $53.96 -14.98%
Ross Stores Inc. (ROST) $44.81 -6.86%
Dollar Tree Inc (DLTR) $62.21 -6.55%
Kohls Corp. (KSS) $42.85 -6.42%
Urban Outfitters Inc. (URBN) $24.49 -6.35%
Perrigo Company plc (PRGO) $146.90 -6.16%
TJX Companies Inc. (TJX) $64.21 -5.92%
Cisco Systems Inc. (CSCO) $26.21 -5.82%

Dow Jones I.A - Risers
E.I. du Pont de Nemours and Co. (DD) $67.05 +1.42%
Caterpillar Inc. (CAT) $69.63 +1.41%
General Electric Co. (GE) $30.28 +0.40%
Boeing Co. (BA) $142.59 +0.04%
Merck & Co. Inc. (MRK) $53.03 +0.00%

Dow Jones I.A - Fallers
Cisco Systems Inc. (CSCO) $26.21 -5.82%
Nike Inc. (NKE) $121.86 -3.27%
Home Depot Inc. (HD) $120.00 -3.08%
Apple Inc. (AAPL) $112.34 -2.92%
United Technologies Corp. (UTX) $96.46 -2.78%
McDonald's Corp. (MCD) $109.97 -1.91%
Exxon Mobil Corp. (XOM) $78.10 -1.65%
Verizon Communications Inc. (VZ) $44.23 -1.34%
Chevron Corp. (CVX) $88.68 -1.31%
Unitedhealth Group Inc. (UNH) $111.41 -1.25%

Nasdaq 100 - Risers
Mylan Inc. (MYL) $48.78 +12.92%
Illumina Inc. (ILMN) $165.65 +6.60%
Vertex Pharmaceuticals Inc. (VRTX) $123.05 +4.90%
Applied Materials Inc. (AMAT) $17.24 +4.30%
Incyte Corp. (INCY) $107.36 +3.03%
Biomarin Pharmaceutical Inc. (BMRN) $107.44 +0.60%
Viacom Inc. Class B (VIAB) $49.99 +0.40%
Amgen Inc. (AMGN) $151.55 +0.38%
Alexion Pharmaceuticals Inc. (ALXN) $166.44 +0.19%
Lam Research Corp. (LRCX) $75.57 +0.17%

Nasdaq 100 - Fallers
JD.com, Inc. (JD) $26.75 -7.05%
Ross Stores Inc. (ROST) $44.81 -6.86%
Dollar Tree Inc (DLTR) $62.21 -6.55%
Cisco Systems Inc. (CSCO) $26.21 -5.82%
Bed Bath & Beyond Inc. (BBBY) $53.53 -5.54%
Tractor Supply Company (TSCO) $85.20 -5.09%
Netflix Inc. (NFLX) $103.65 -4.84%
Keurig Green Mountain Inc (GMCR) $43.51 -4.18%
Wynn Resorts Ltd. (WYNN) $62.20 -3.86%
Facebook Inc. (FB) $103.95 -3.77%