New York Stocks slid Friday despite growing hopes for an interest rate cut after a University of Michigan report indicated a sharp drop in consumer sentiment. Still, the Dow Jones industrials and Standard & Poor's 500 index managed to post a third straight week of gains.
"The consumer report coming out on a Friday after a nice rally gave a good reason to take profits," said Barry Berman, head trader for Robert W. Baird & Co. in Milwaukee.
Michigan's widely watched index of consumer sentiment fell to 87.2 in mid-June from May's reading of 92.1, Dow Jones Newswires reported. The reading was far below the level of 93 that market watchers had been expecting.
For the week, the three main gauges were mixed, with the Dow up 0.6 percent, the Nasdaq slipping 0.1 percent, and the S&P up 0.1 percent.
Investors took the Michigan report as a reason to trim some of their stock holdings following a three-day rally.