081015-usa-retailsalesdrop

US Retail Sales Drop

A day after the U.S. government outlined a plan to invest (billions) ($250 billion) in the country's banks U.S. stocks stumbled in early Wednesday as bleak retail sales numbers took center stage. Retail stores saw a 1.2% decline last month--the biggest pullback in more than three years as consumers, fearing a recession, kept a tight grip on spending. The headline number, as well as sales excluding autos, was far worse than economists expected. Some said the report pointed to a strong chance of negative GDP growth in the third quarter and possibly another interest rate cut up to 50 basis points in the next few months.

Added to the ugly retail sales report--a regional manufacturing gauge from New York state hit its lowest level since its inception in 2001.

Both overshadowed a dip in wholesale inflation for September as well as a strong earnings report from Coca-Cola.

Also turning in quarterly numbers, JP Morgan and Wells Fargo. The two posted better than expected earnings despite higher credit losses. Meantime Delta's third quarter loss was wider than forecast in the face of record high oil costs over the summer. Executives said looking ahead that the recent slide in oil prices could save Delta money but that the outlook for next year is still murky.

Jeanne Yurman reports from New York.

stumble 

1. to trip and almost fall while walking or running

2. to walk in an unsteady or unsure way

3. to make mistakes or hesitate in speech

bleak Providing no encouragement; depressing: a bleak prospect.
grip

1. a very tight hold: he felt a grip at his throat

2. the style or manner of holding something, such as a golf club or tennis racket

3. power or control over a situation, person, or activity: rebel forces tighten their grip around the capital
GDP gross domestic product
gauge - a measuring instrument for measuring and indicating a quantity such as the thickness of wire or the amount of rain etc.

inception The beginning of something, such as an undertaking; a commencement. See Synonyms at origin.
overshadow To make insignificant by comparison; dominate.
wholesale To sell in large quantities for resale.
outlook Expectation for the future: the long-term outlook for economic growth.
murky Dark, dim, or gloomy: a murky dungeon. See Synonyms at dark.