Wall Street retreated sharply Thursday after many of the major U.S. retailers reported weak April sales and heightened concerns about consumer spending in the coming months. Companies including Wal-Mart Stores Inc., J.C. Penney Co. and Federated Department Stores Inc. said business fell in April, hurt by rising gasoline prices. Though many retailer stocks fared well Thursday, the sales reports raised worries in the market that Friday's retail sales data from the Commerce Department will suggest that economic growth is slowing more abruptly than anticipated, according to AP. Also disappointing investors was the U.S. trade deficit, which soared more than 10 percent to $63.9 billion (¤47.24 billion) in March, its highest level in six months. The gap was wider than Wall Street's forecast of $60 billion (¤44.36 billion), and was driven up by high crude oil imports. The data showing rising costs amid sluggish growth led investors to take profits in sectors that saw huge gains in recent weeks. On Wednesday, the Dow hit its 21st record close of the year after the Federal Reserve left interest rates unchanged and reiterated that inflation remains the central bank's primary concern. Though investors were relieved to hear the Fed was not leaning toward monetary tightening, they remain anxious that rising costs will prevent the central bank from lowering rates _ or even compel it to raise rates, which could hurt the already flagging economy. «What the Federal Reserve said yesterday is that their principal focus is on inflation, and what retail sales said today is that their focus should be on the economy,» said Hugh Johnson, chairman and chief investment officer of Johnson Illington Advisors. «Things are not good out there in economy land.» Still, while the news Thursday was disappointing, many analysts have been predicting a pullback in stocks after the market's runup of the past few weeks. In midday trading, the Dow Jones industrial average fell 129.13, or 0.97 percent, to 13,233.74. Broader stock indicators also declined. The Standard & Poor's 500 index lost 15.96, or 1.06 percent, to 1,496.62, and the Nasdaq composite index dipped 34.29, or 1.33 percent, to 2,542.05. -- SPA
