Stocks Slump on GE, BofA Reports

Major indexes fell Friday after GE's third-quarter revenues disappointed analysts and BofA posted a loss. The Dow slipped back below 10,000

U.S. stocks finished lower Friday in a pullback from the market's recent strong gains. Third-quarter earnings reports posted by General Electric (GE) and Bank of America (BAC) -- and a drop in a consumer sentiment gauge -- generated selling pressure.

GE's third-quarter revenues missed analysts' estimates, while BofA posted a loss for the period. The University of Michigan consumer sentiment index fell to 69.4 in October from 73.5 in September.

The Dow Jones industrial average moved back below the 10,000 mark. The retreat in equities followed a late-session rebound Thursday that allowed the Dow industrials to close above 10,000 for two days in a row.

The weakness in GE and BofA countered better than expected results from Google (GOOG) and IBM Corp. (IBM) reported after the close of trading Thursday.

Meanwhile, industrial production rose a better-than-expected 0.7% in September.

On Friday, the 30-stock Dow Jones industrial average ended lower by 67.03 points, or 0.67%, at 9,995.91. The broad Standard & Poor's 500-stock index was down 8.88 points, or 0.81%, at 1,087.68. The tech-heavy Nasdaq composite index lost 16.49 points, or 0.76%, to 2,156.80.

On the New York Stock Exchange, 20 stocks were lower in price for every 10 that advanced Breadth on the Nasdaq was 18-8 negative.

Treasuries, the dollar index, and gold and crude oil futures were higher.

Looking ahead to next week, investors will get readings on inflation and the health of the housing sector. Here are next week's key releases:

Wall Street will also brace for another flood of third-quarter earnings reports.

Bank of America said on Friday it lost more than $2 billion after preferred dividends in the third quarter, steeper than what analysts had been expecting. One of the largest recipients of government bailout funds, the bank also set aside more than $11 billion to offset bad loans, $5 billion more than in the year-ago period.

GE said its profit dropped 44% in the most recent quarter, hurt by weakness in its financial unit, GE Capital.

Earnings reports from banks have been a key focus for the market this week. Investors want to see signs that credit losses are easing, which would be a sign that consumers and businesses are having an easier time paying off their debts.

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