* Deere profit misses estimates, stock slides
* Retail, import sales data spurs economic concerns
* Resurgent oil price weighs on stocks
* Retail outlook, earnings weigh on sentiment
(Updates to early morning, adds byline)
By Ellis Mnyandu
NEW YORK, Aug 13 (Reuters) - U.S. stocks fell on Wednesday
as rising oil prices, a profit shortfall by manufacturer Deere
& Co <DE.N> and disappointing retailer outlooks and earnings
added to worries about the health of the U.S. economy.
Shares of Deere, whose results also reflected the widening
impact of the U.S. housing slump, slid almost 8 percent, and
dragged along other big manufacturers, including Caterpillar
Inc <CAT.N>, down 4 percent.
Shares of financial services companies, including banks,
also took a beating on fears of more mortgage-related losses.
In addition Wednesday marks the expiration of a rule that
helped stem abusive short selling in shares of some 19 U.S.
financial companies, including Wall Street banks.
"People are worried about the impact the credit crunch is
going to have on consumers," said Eric Kuby, chief investment
officer at NorthStar Investment Management Corp in Chicago.
"The retail sales number this morning was another data point
suggesting that the economy is weakening and the consumer is
pulling back on their purchases."
The Dow Jones industrial average <> fell 134.91 points,
or 1.16 percent, to 11,507.56. The Standard & Poor's 500 Index
<.SPX> fell 9.30 points, or 0.72 percent, to 1,280.29. The
Nasdaq Composite Index <> declined 8.69 points, or 0.36
percent, to 2,421.92.
A stronger-than-expected rise in July import prices added
to investors' concerns due to signs that even as the economy
slows, price pressures are mounting. Another report showed
retail sales fell in July, albeit in line with expectations.
For more see [].
Deere shares declined to $63.82 on the New York Stock
Exchange, where shares of Caterpillar, a maker of bulldozers
and excavators, dropped to $68.88.
Shares of General Electric <GE.N>, also an economic
bellwether, were down 1.4 percent at $29.33, while those of
plane maker Boeing <BA.N> slipped 2.2 percent to $64.49.
On the retail front, department store operator Macy's <M.N>
reported a lower quarterly profit and forecast lower sales at
stores open at least a year. Its stock fell 2.5 percent to
$19.76.
Women's apparel retailer Liz Claiborne Inc <LIZ.N>, home to
the Juicy Couture and Kate Spade store chains, cut its 2008
profit forecast, citing economic concerns. Its outlook
overshadowed a stronger-than-expected quarterly profit, sending
the stock tumbling 14.4 percent to $12.77. [].
Among financials, shares of Bank of America <BAC.N>, the
No. 2 U.S. bank, fell more than 6 percent to $29.20 and
Citigroup <C.N>, the largest U.S. bank, was down 3 percent at
$17.98. The S&P financial index <.GSPF> fell 2.9 percent.
Technology shares also fell on concerns that the economic
slowdown will hurt business spending. Research In Motion
<RIMM.O> was the top drag on the Nasdaq, falling 1 percent to
$127.01 and offsetting a rise in shares of Apple Inc <AAPL.O>
following news it will expand sales of its iPhone in an
alliance with top U.S. electronics chain Best Buy <BBY.N>.
Since a U.S. Securities and Exchange Commission emergency
rule went into effect July 21, short sellers have been required
to pre-borrow stock in mortgage finance giants Freddie Mac
<FRE.N> and Fannie Mae <FNM.N> and 17 Wall Street firms such as
Goldman Sachs <GS.N> before executing a short trade.
[]
(Editing by James Dalgleish)
