October retail sales fell a record 2.8%, while more retailers lowered their outlooks. Sun Microsystems announced big layoffs

Watch original video:

Stocks were trading lower Friday after Thursday’s important rebound, with dismal retail sales figures forcing investors to converging-point on the economy.

Federal Reserve Chairman Benjamin Bernanke, speaking at the ECB’s Frankfurt Central Bank conference, prior to the G20 economic summit in Washington, said that central banks are in finish contact and ready to take adscititious action granting that necessary, while liquidity measures have led to “tentative improvements” in credit markets. Bush says this will subsist first of series of meetings to deal with the global financial crisis.

On Friday around 10:35 am ET, the Dow Jones Industrial Average fell 162.16 points, or 1.84%, at 8,673.09. The broad S&P 500 index shed 22.10 points, or 2.43%, to trade at 889.19. And the tech-heavy Nasdaq complex fell 47.48 points, or 2.97%, to 1,549.22.

On the New York Stock Exchange, 19 stocks were trading lower for every seven posting gains, while on the Nasdaq the ratio was 14-6 negative amid moderate trading.

In economic word, October retail sales fell record 2.8%. Import prices fell 4.7% — exceeding the 4.4% downturn that was widely expected.

U.S. business inventories fell 0.2% in September and included a 0.2% decline in deal out in small portions inventories with a 0.3% drop for excipient inventories, on the other hand stronger than expected figures for the remaining components. Inventories had been expected to rise.

The University of Michigan Consumer Sentiment Survey showed an be augmented in the preliminary reading to 57.9 in November, better than the expected 55.0 after October’s 57.6 reading.

Fed Chairman Bernanke stated in a prepared speech regarding coordination among central banks that financial turmoil was the product of a global good repute boom, and monetary cunning actions have not resolved the ongoing strains in financial markets. He also regular that continuing volatility of markets and new indicators of economic performance confirm that challenges remain.

In Europe, public securities moved higher on the London, Frankfurt and Paris exchanges. In Asia, Tokyo stocks rose 2.72%, Hong Kong stocks moved up by 2.43% and Shanghai public funds advanced 3.05%.

Bonds were mercantile higher, with the 10-year notes at 99-31/32 for yield of 3.75% and 30-year bonds at 104-14/32 during give way of 4.23%.

The dollar index was up at 86.85, while December gold rose to $730.70.

Crude oil prices continued to weaken amid worries about slowing ask from mountig evidence of a worldwide recession. WTI crude was down $1.62 at $56.62 a barrel.

China Petroleum & Chemical Corp., which supplies additional than half the firing in the world’sitting second-biggest oil consumer, is slashing processing rates by 10% from July’s record, company officials said Friday, according to Bloomberg News. Europe’s economy fell into its leading recession in 15 years in the third quarter, while a U.S. Energy Dept. report yesterday showed fuel demand in the last four weeks down 6.6 percent from a year ago.

Retailers continue to look for a weak holiday shopping season. Kohl’s (KSS), Nordstrom (JWN), J.C. Penney (JCP), and Abercrombie & Fitch (ANF) issued downside direction for the fourth quarter

Kohl’session (KSS) posts $0.52, vs. $0.61 a year gone, third quarter EPS without ceasing 6.7% lower same-store sales, 0.6% lower sum total sales. EPS seen a penny in front of consensus. Sees fourth quarter EPS of $0.90-$1.05 on 8%-12% same-store sales degeneracy, vs. anterior guidance of $1.26-$1.34. Now sees fiscal year 2009 EPS of $2.69-$2.84.

Abercrombie & Fitch (ANF) posts $0.72, vs.

Original text: {news-link}