Stocks ended the week down 1% as disappointment in earnings and economic news snapped the market's recent winning streak.
The Dow Jones Industrial Average lost 261.41, or 2.5 percent, to close at 10,097.90 Friday after a report showed consumer sentiment dropped to its lowest level in nearly a year and as the latest batch of earnings disappointed.
All 30 components ended lower, led by Bank of America , which dropped a whopping 9 percent.
Though, for the week, Boeing was the biggest drag on the Dow, down 4.3 percent.
Today's decline, coupled with a modest loss Thursday, clipped the Dow's seven-day winning streak, leaving the index down 1 percent for the week.
The Nasdaq finished the week down 0.8 percent. The biggest drag on the Nasdaq 100 was Apple, which lost nearly 4 percent amid worries about a glitch with the iPhone 4.
Apple CEO Steve Jobs held a press conference Friday to address the problem, which causes calls to be dropped. The stock got a quick pop after Jobs said the company will give customers a free caseto help correct the glitch but ended down 0.6 percent.
"We're not feeling right now that we have a giant problem we need to fix," Jobs said.
- Read a Live Blog of the Apple Event
- Poll: Was This the Right Response From Apple?
The glitch hasn't seemed to dampen consumer demand for Apple products but overall, consumers are growing more pessimistic about the economic recovery.
Reuters and the University of Michigan reported their gauge of consumer sentiment dropped to 66.5 in mid-July, the lowest level in 11 months. This was a sharp reversal after index hit its highest level in 2 1/2 years last month.
And consumer prices fell 0.1 percentin June, the third straight monthly decline, amid a decline in energy costs. Excluding volatile food and energy prices, core CPI rose 0.2 percent.
This came after a string of disappointing economic data earlier in the week, including retail sales and manufacturing activity.
Earnings season got off to a solid start this week, with strong reports from Alcoa and Intel but waned as the week went on.
Financials were the week's worst peformers, down nearly 3 percent after disappointing results out of the sector.
Bank of America and Citigroup beat estimates but disappointed nonetheless as revenues were weak.
This came after similar results from JPMorgan earlier this week that beat expectationsbut failed to impress analysts.
Financial-reform legislation won final approvalin the Senate late Thursday, capping a year of back-and-forth since President Obama proposed financial reform in June 2009.
Banks already are creatively turning financial-reform legislation to their advantage — and their customers may pay the price.
“There’s so much flexibility that these companies have in running their business that this bill is not going to run over them,” Dick Bove, an analyst at Rochdale Securities, said on CNBC Friday. “It’s going to run over the consumer, it’s going to run over the American economy, it’s not going to run over these banks.”
