DJI Updates

	=DJ UPDATE: US Stocks Tumble As Sentiment, Earnings Disappoint
	(Updates with additional company information, beginning in the 12th paragraph.) By Donna Kardos Yesalavich Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--U.S. stocks tumbled Friday as a decline in consumer sentiment added to the market's disappointment over weaker-than-expected second-quarter revenue at Bank of America, Citigroup and General Electric. The Dow Jones Industrial Average dropped 261.41 points, or 2.52%, to 10097.90, its biggest drop this month. For the week, the Dow fell 0.98%, marking its third week in the red out of the past four. The measure is still up 3.31% for the month but down 3.17% for the year. All of the Dow's 30 components fell Friday, led by Bank of America, which tumbled 1.41, or 9.2%, to 13.98. BofA was also the Dow's worst performer this week, with a drop of 7.5% during the period. The big bank's second-quarter earnings report revealed a jarring mix of falling profit and an estimate that Congress's just-passed financial-reform bill could hit the Charlotte-based bank for more than $10 billion by the end of next year. Revenue dropped 11% to $29.15 billion, below analysts' estimate for $29.75 billion. General Electric declined 70 cents, or 4.6%, to 14.55. The conglomerate's second-quarter earnings rose 16%, marking the company's first profit growth in nine quarters, or since the financial crisis began. But revenue slipped 4.3% to $37.44 billion and came in short of analysts' consensus $38.37 billion view. GE blamed the trend on downsizing at GE Capital as well as lower industrial equipment sales and dispositions of some industrial assets. "It's not surprising we're getting a little disappointment on the top line because we're not seeing enough economic growth to really generate really strong numbers," said Russ Koesterich, managing director of BlackRock's scientific active-equity business. Adding to the investors' worries, a key reading on consumer sentiment came in well below the prior reading as well as expectations, indicating consumer-sentiment levels hit a wall as of mid-July. "That took the wind out of the market," Koesterich said. "Analysts got way too excited about the resumption in consumption and we're getting a reality check. For the consumer this is going to be a long, slow recovery." The Nasdaq Composite dropped 70.03, or 3.11%, to 2179.05. It declined 0.79% this week. Technology stocks were dragged lower after Google missed second-quarter projections, sending shares down 34.41, or 7%, to 459.61. The Standard & Poor's 500 index declined 31.60, or 2.88%, to 1064.88. It slipped 1.21% this week. The financial sector led the S&P 500's broad slide Friday. Weighing on the sector, Citigroup dropped 26 cents, or 6.3%, to 3.90. While the bank's earnings topped analysts' estimates, it joined Bank of America and General Electric in missing analysts' revenue expectations. Citi's revenue dropped 33% to $22.07 billion, below the Street's estimate for $22.16 billion. Weak investment-banking results, anemic loan demand, and a lack of progress in U.S. consumer-banking businesses hampered the results. Goldman Sachs eked out a gain of 95 cents, or 0.7%, to 146.17, bucking the financial sector's slump after the Securities and Exchange Commission announced a settlement of a lawsuit accusing the firm of misleading investors about a subprime mortgage product. The SEC said Goldman will pay $550 million and reform its business practices to settle the charges. Goldman didn't admit or deny the allegations but acknowledged making a mistake in its marketing materials. Charles Schwab was another rare bright spot in the financial sector with a climb of 59 cents, or 4.1%, to 15.14. The discount brokerage reported flat second-quarter profit but showed signs of emerging from the damage inflicted by low interest rates and money market fund fee waivers. Gannett slid 1.61, or 11%, to 13.50. The media company's second-quarter profit more than doubled, thanks to tax gains and strong gains at its broadcast and digital divisions, but its largest source of revenue--print advertising--continued a worrisome decline. Polycom (Nasdaq) dropped 3.26, or 10%, to 28.75. The maker of audio and data conferencing products posted an 18% drop in second-quarter profit on higher overhead costs, which masked revenue and gross-margin growth. Federated Investors slipped 20 cents, or 1%, to 20.84. The company agreed to acquire $17 billion in money-market assets from SunTrust Banks as the regional bank completed a review of what to do with the operation. SunTrust fell 1.88, or 7.5%, to 23.31. Genuine Parts rose 1.08, or 2.6%, to 43.23. The parts distributor and seller's second-quarter profit rose 20%, topping Wall Street's forecasts, on continued strength in its automotive segment. Chief Executive Thomas Gallagher said "we are optimistic that we can show continued progress over the balance of the year." -By Donna Kardos Yesalavich, Dow Jones Newswires; 212-416-2188; donna.yesalavich@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=F7YFTra0qHnGhaInQbavyQ%3D%3D. You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires