NEW YORK -- A combination of so-so economic news and violence in Iraq pushed the stock market sharply lower Thursday.
The Dow Jones industrial average fell 109.69 points, or 0.7 percent, to 16,734.19. The Nasdaq shed 34.30 points, or 0.8 percent, to 4,297.63. The S&P 500 was down 13.78 points, or 0.7 percent, to 1,930.11.
Stocks fell from the start of trading on a government report that retail sales for May came in slightly lower than expected. A separate report on jobs was weak, too. A surge in oil prices as violence flared in Iraq also weighed on the market and hammered airline stocks.
For the Standard and Poor's 500, it was the third down day in a row, a reversal of sorts from steady, if unremarkable, rises for much of the year. The index is heading for its first weekly loss in four weeks.
Uri Landesman, president of hedge fund Platinum Partners, said the pullback wasn't surprising. Investors had gotten too complacent about the S&P 500's steady rise this year. The index is up 4.4 percent after a remarkable 30 percent increase in 2013.
"It's time for profit taking, taking risk off the table," he said. "It's very rare that markets move up in a straight line."
In the retail report, the Commerce Department said U.S. sales rose 0.3 percent last month, helped by a surge in auto demand. That was the fourth straight month of gains but shy of the 0.4 percent increase that economists expected.
The Labor Department said that weekly applications for unemployment benefits rose 4,000 to a seasonally adjusted 317,000.
"The data today was a little unfulfilling," said Lawrence Creatura, a portfolio manager at Federated Investors. Still, he is optimistic in the face of the selling because he believes the economy is generally strengthening. "We're definitely not flinching. We're holding our positions."
Energy stocks rose broadly after insurgents captured two cities in Iraq, raising the specter of disrupted global oil supplies. The price of oil rose $2.13, or 2 percent, to $106.53. Diamond Offshore Drilling climbed $1.89, or 4 percent, to $48.77, making it the second-biggest gainer in the S&P 500.
Among the 10 sectors in the S&P 500, only energy and utility companies were up for day.
Shares of Lululemon Athletica fell $7.05, or 16 percent, to $37.25 after reporting that first-quarter profit tumbled 60 percent, stung by a one-time tax adjustment. The Canadian yoga-clothing company also lowered its full-year earnings forecast.
Restoration Hardware shares jumped $9.05, or 13 percent, to $80.40 after the furniture and housewares company reported stronger-than-expected results in its fiscal first quarter and raised its outlook for the year, topping Wall Street's prediction.
Shares of Twitter rose $1.25, or 3.5 percent, to $36.79 after news that its chief operating officer, Ali Rowghani, had resigned. Rowghani was in charge of expanding Twitter's user base, but this didn't happen as quickly as investors had hoped.
In government bond trading, the yield on the 10-year Treasury note, which moves in the opposite direction to its price, slipped to 2.60 percent from 2.64 percent on Wednesday.
Business on 06/13/2014