Original article appears on MarketWatch.com.

U.S. stocks slammed again as retail sales drop

Major indexes down for second straight week; Nasdaq Composite hardest hit

NEW YORK (MarketWatch) — U.S. stocks on Friday fell sharply to tally a second consecutive week of losses as a record decline in retail sales and a warning of falling mobile-phone sales hammered home the ongoing fallout of the ailing economy.
The market again showed its erratic side in the final hour of trade, briefly turning higher as utilities and consumer staples gained, but ultimately being weighed down by technology.

Finishing near session lows, the Dow Jones Industrial Average declined 337.94 points, or 3.8%, to end at 8,497.31, leaving the blue-chip index down 5% for the week.

All but two of the blue-chip index’s 30 components closed in the red, with the larger losses tallied by Home Depot Inc., down 7.6%, semiconductor giant Intel Corp., off 7.7%, and JP Morgan Chase, off 7.3%.
Citigroup Inc. shares gained nearly 1% amid reports the bank is expected to slash at least 10,000 jobs across the globe.

General Motors Corp. shares climbed 2%, amid debate over whether the government should step in and prevent the country’s biggest automaker from possible bankruptcy.

One equity manager questioned GM’s viability, regardless of whether federal funds come into play.

“Even if they are given some capital, it’s a band aid. The Japanese and the Germans have much better business models and products. The free market should determine who makes the best cars, and the consumers should determine who survives,” said Harry Rady, CEO of Rady Asset Management.
Some of the workers impacted by the decline of the U.S. auto industry would be absorbed by foreign automakers with domestic plants, said Rady…

‘The free market should determine who makes the best cars, and the consumers should determine who survives.’

— Harry Rady, Rady Asset Management.

Read the full article here.