BOSTON (Reuters) – Hedge fund manager Chris Shumway told investors on Friday that he is returning all of their money in a few weeks, becoming the latest prominent stock picker to essentially shut down his firm.

The 45-year-old manager, who got his start working for hedge fund industry legend Julian Robertson’s Tiger Management, told investors in Shumway Capital Partners that he will continue to oversee his own money.

Noting that his decision was very difficult, Shumway wrote to clients that “after nine great years, I have decided to return all external capital back to you, our partners, by the end of the first quarter of 2011.” A copy of the letter was obtained by Reuters.

The move was first reported by Bloomberg.

Shumway now joins a growing list of middle-aged managers who surprised their investors by suddenly returning capital. Last year Stanley Druckenmiller, best known for engineering Soros Fund Management’s famous bet against the British pound, quit. Before him, well-known technology investor Dan Benton shut down his firm.

Only a few months ago Shumway said he was stepping down as chief investment officer from the $8 billion fund firm, appointing Tom Wilcox to run the day-to-day operations. Wilcox, he wrote to clients in November, was the “single most profitable individual in our firm’s history and has been critical to our success.”

The move unnerved investors and clients asked for billions of dollars back. More recently, though, some said they were reassured that Shumway said he was reinvigorated by focusing on big issues.

Since 2002, the firm has returned an average 17 percent a year, 14 percent above those for the S&P 500 through multiple market cycles, Shumway told investors.

Only a year ago Goldman Sachs’ (GS.N) Petershill Fund, which buys equity stakes in hedge funds, took a stake in Shumway.

Shumway has long been celebrated as a talented stock picker, but his performance suffered some last year, people familiar with his returns said.

(Reporting by Svea Herbst-Bayliss, editing by Gerald E. McCormick, Dave Zimmerman)

MOSCOW (Reuters) – Russian stock markets and the ruble weakened on Monday after news that at least 31 people were killed and more than 100 injured in a suicide bomb blast at Russia’s biggest airport Domodedovo.

Below is a selection of comments about the investment implications of the incident:

ROLAND NASH, VERNO CAPITAL

“It is the terrible reality of our generation, and one to which Russia is as susceptible as any country globally. I’m sure it will have a short-term impact on business travel, but it is, unfortunately, not something new. Maybe some people will link it to the upcoming election season, but if they do, then they are missing the point.”

ALEXEY SUROV, TRADER, BANK ZENIT

“Based on previous experience with the Russian market falling after terrorists attacks, I don’t think the market will stay down on the news for more than several days.

Aeroflot shares are down because investors are afraid the company’s revenue will go down, as strengthened security measures will lead to fewer flights and fewer people flying to and out of Moscow.”

JOHN WINSELL DAVIES, LEAD FUND PARTNER, WERMUTH ASSET

MANAGEMENT

“The Russian RTS (index) traded higher just five days after the Nord Ost hostage crisis. The RTS straight-line rallied 7.5 percent in the month of September following the Beslan school tragedy. Moscow does not believe in tears.”

ZSOLT PAPP, UBP ASSET MANAGEMENT, ZURICH

“If it was a terrorist attack then the timing was well chosen, but I don’t think any major investor will be deterred by a bomb attack from investing in any major Russian company. Russia is politically a stable country, remarkably stable, and other factors such as the oil price, play a much bigger role. For the kind of privatization that the government is lining up — medium to long-term players — I don’t think this will have an impact.”

YEVGENY GONTMAKHER, INSTITUTE OF MODERN DEVELOPMENT

“This tragic event will in no way influence Russia’s business climate, which is (already) unfavorable. The business climate is determined by more stable circumstances such as corruption and state interference with business, not by one-off events like this”

ALEXEI BACHYURIN, TRADER, RENAISSANCE CAPITAL

“It (the blast) is moving the market in the short term, but there is no fundamental reason for the market to fall. If you remember, the market didn’t react strongly to (previous blasts).

It is negative for airlines as it is clear that the rules will be tightened. The market went down as it was ready to go down — a lot of long positions were opened. All depends now on the United States. If they close up, we will open normally.”

FOREX TRADER AT MAJOR RUSSIAN BANK

“If it had been the Kremlin, it would have been a problem (for markets). But when it’s a social building like Domodedovo, it is perceived like a separatists’ act. It’s our reality. Our financial markets do not react to this.”

YAROSLAV LISSOVOLIK, CHIEF STRATEGIST, DEUTSCHE BANK

“I don’t think there will be a long term effect… We are already seeing some negative impact (on markets), but in the long run there will increased safety measures on flights and in airports. Gradually this negative impact will disappear, as we saw in past episodes of such events.”

VLADIMIR BRAGIN, ANALYST, ALFA BANK

“The blast, and the measures the government undertakes, will affect everything: first the transport industry, then infrastructure as a whole, which will in turn affect the oil sector. Additional security measures that may be introduced will probably scare some investors.”

ILYA MAKAROV, ANALYST, ATON

“The market reaction was negative. We had fallen by 1.3 percent (before the blast), and now by around 2.2 percent. The market was down because of Sberbank and Aeroflot, which are both state companies and always react first on such news. There are a lot of emotions.”

(Reporting by Moscow Newsroom)

NEW YORK (Reuters) – U.S. stocks just posted back-to-back years of strong gains, yet the small U.S. investor largely remained a spectator. Now financial advisers say investors, many of whom rode out the financial crisis in cash and bonds, are slowly regaining confidence.

“What I’m seeing now is there’s a lot more talk about getting into stocks,” said David Gottlieb, a Cleveland adviser for Edward Jones, a nationwide brokerage catering to middle-class Americans.

Gottlieb, who for several months has encouraged clients to increase their stock allocations, advises reducing bond holdings and buying dividend-paying stocks.

The Standard & Poor’s 500 Index (.SPX) kicked off the new year by rising 1.1 percent on Monday, reaching levels not seen since the weeks before Lehman Brothers collapsed in September 2008. Large company shares, as a group, have nearly doubled since their March 2009 lows, reflecting two years of double-digit gains.

Worries of a banking system collapse and the deepest recession in more than 70 years drove many retail investors out of the stock market back in 2008. And the May 2010 “flash crash,” when stocks lost 700 points in minutes for no apparent reason, further undermined confidence.

Investors showed their dismay by pulling money from stock mutual funds month after month, opting for the perceived safety of cash and bonds.

CONFIDENCE

But 2010 ended on a high note, giving investors confidence to start buying stocks again. The returns from bonds have also started to look more questionable after a sell-off at the end of last year.

And some advisers contend that the stock market recovery is far from over.

Todd Morgan, chairman of Bel Air Investment Advisors in Los Angeles, one of the largest U.S. wealth managers with $6 billion in client assets, said stocks have climbed “a wall of worry” for two years and yet clients are still underinvested.

“I’ve been calling clients for three months to put more money in equities. It’s a slow, arduous process, but they’re starting to come around,” he said. “I think it is the cheapest financial asset out there and will continue to outperform bonds.”

Morgan stressed that while there is more talk about buying equities, market data indicates people are not yet buying.

“When you see more liquidation of bond mutual funds and investment in stock mutual funds, then I’ll get cautious about stocks,” Morgan said. “The small investor is not there yet, and I don’t see him getting there for a while.”

According to Investment Company Institute mutual fund flow data, investors withdrew funds from domestic U.S. stock funds in nine out of 12 months last year, roughly $81 billion over all.

By comparison, investors added $254 billion into bond funds last year, though the final two months saw net withdrawals, according to ICI.

Money market fund assets have fallen from their early 2009 peaks, but $2.81 trillion was still parked in these low-yielding vehicles at the end of December.

The bulls acknowledge there are still plenty of stumbling blocks, including a weak U.S. dollar, the mounting federal deficit and continued economic weakness.

“We had two strong years despite net fund outflows in every month except December, and despite the worst recession in decades,” said Aaron Skloff, whose Skloff Financial Group in Berkeley Heights, New Jersey, manages money for individuals. “What’s going to happen when the tide turns, confidence resumes and money starts coming back in?”

CAUTION

Still, some advisers are being very cautious.

William Jordan of William Jordan Associates in Laguna Hills, California, says he is telling clients not to increase their stock exposures.

“As good as the past two years have been, you can’t say the stock market is undervalued. I’m not bailing out, but I’m advising people to take some profits.”

Clients also are encouraged to stick with their investment plans. Scott Smallman, a Seattle broker for Wedbush Securities, said he has been checking to see if the stock market rebound has pushed some stock exposures too high.

“When markets are good, our job is to talk clients down from the ceiling,” said Smallman, who on Monday encouraged some clients to consider buying municipal bonds.

Other advisers, though, remain optimistic on the outlook for U.S. large company shares.

“The world is getting better, the financial system is healing. I would not bet against the U.S.,” said Kevin Peters, a Morgan Stanley Smith Barney (MS.N) adviser in Purchase, New York, whose wealthy clients collectively have more than $1 billion with the firm.

Peters warns there will likely be market swings this year and stock prices could pull back at any time. The recent rally in stocks may attract small investors who would extend that rally. Even with the rally, stocks are still down about 20 percent from highs in October 2007.

“If even a little bit of that (retail) money moves out of risk-free assets into growth assets, that’s a whole ‘nother leg of the market recovery,” said Peters.

(Reporting by Joseph A. Giannone, editing by Matthew Lewis)

NEW YORK (Reuters) – Expectations about “Black Friday,” when Americans traditionally get serious about holiday shopping, could sway stocks this week if it looks like the economy will get a pop from consumer spending.

The outcome of talks to shape a bailout for Ireland could also move stocks, analysts said, but they cautioned that other highly indebted euro zone countries could still be a source of worry.

Ireland will seek a bailout from international lenders, Finance Minister Brian Lenihan said on Sunday, ending weeks of speculation that it would need aid to prop up its banks and help it secure cheaper state funding.

Sources have told Reuters Ireland may need 45 billion to 90 billion euros ($63 billion to $126 billion), depending on whether it needs help only for its banks or to cover general government spending too.

Even though light volume will define trading during the holiday-shortened week of the U.S. Thanksgiving Day on Thursday, investors will watch to see if retail sales appear strong enough to give the market a Santa Claus rally.

The lighter-than-average volume expected this week could lead to exaggerated moves in the market after a week of sharp losses and advances.

Further gains would resume an up-trend that began at the end of the summer, with the Standard & Poor’s 500 index up 14 percent since August 31. The market ended last week little changed and suffered losses the week before.

“Bullish sentiment toward holiday sales is the most likely catalyst for the cyclical bull market to resume, so a lot rests on that,” said Chris Burba, a short-term market technician at Standard & Poor’s in New York. If sales seem weak, “this dip could turn into something bigger.”

Retailers have been optimistic in their forecasts for holiday sales, and investors will want to see evidence to support those forecasts as worries about consumer spending weigh on the economic outlook.

At a rate of 9.6 percent, unemployment is seen as one of the biggest drags on the U.S. economy,

Target Corp (TGT.N) last week was the latest retailer to give an upbeat forecast, saying it expects to post its best same-store sales in three years during the period.

The day after Thanksgiving traditionally marks the start of the holiday shopping season and is called Black Friday because retailers generally make enough sales to get their accounts into black ink.

Shoppers are expected to flood stores in search of bargains while retailers fight for their share of those sales. Target, for instance, is using a built-in discount for shoppers who use its store credit card.

“It’s a very competitive retail environment … a sign people are slugging it out” for every last sale, said Sasha Kostadinov, a portfolio manager at Shaker Investments in Cleveland.

With the recent market weakness, the S&P 500 has had trouble staying above 1,200 and ended just below that level on Friday.

A break above the mark, however, “would be a good sign,” signaling bullish momentum, said Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research.

GDP, DURABLES ON TAP

Last week, the Dow Jones industrial average (.DJI) rose 0.1 percent, the S&P edged up 0.04 percent and the Nasdaq dipped 0.004 percent.

Among this week’s economic data is the government’s second estimate of third-quarter gross domestic product growth, expected to show the economy grew a bit faster than previously thought.

Two reports on housing are expected as well: the existing home sales report, which is expected to show a drop in October sales after two months of gains, and new homes sales, which is expected to show little change.

Other reports will give a glimpse of manufacturing, consumer spending and inflation.

Investors will look to see if the data supports the Federal Reserve’s decision earlier this month that it would buy more debt in an effort to boost the economy.

On Tuesday the Fed will release minutes from the policy-setting meeting in which officials discussed the decision to buy $600 billion in bonds to stimulate the economy.

(Reporting by Caroline Valetkevitch; Editing by Kenneth Barry and Maureen Bavdek)

QUIET DAY, ANOTHER LOSS: Stocks fell in the absence of any news to influence traders. So with no reasons to buy, they kept on selling as they grew more pessimistic about the economic recovery.

OIL FALLS, SO DO ENERGY STOCKS: The price of oil extended its slide, and oil companies including Chevron Corp. reacted by falling too.

WHAT THE DOW DID: The Dow Jones industrial average fell 57 points, and ended the week with a drop of just under 1 percent.

NEW YORK – Stocks fluctuated Monday as investors did some tentative buying but then went back to selling for a fifth straight day.

The Dow Jones industrial average was down about 30 points in late afternoon trading. All the major indexes seesawed through the day. Interest rates dropped as investors looking for safe investments bought Treasury notes and bonds.

Investors were dealing with more downbeat economic news. A regional manufacturing report fell short of forecasts and Japan became the latest country to show signs of slowing growth. Both reports raised investors’ concerns about the pace of the global economic recovery. Analysts said Monday’s short buying spurt was just a pause following four days of losses that sent the Dow down almost 400 points.

“The market is really being controlled by (short-term) traders,” said Mike Rubino, CEO at Rubino Financial Group in Troy, Mich. “The long-term investor doesn’t appear to be anywhere in sight.”

Without those long-term investors, trading is expected to remain erratic for the foreseeable future.

The Dow fell 33.45, or 0.3 percent, to 10,269.70. The Standard & Poor’s 500 index fell 3.59, or 0.3 percent, to 1,075.66, while the Nasdaq composite index fell 0.40, or 0.02 percent, to 2,173.08.

Advancing stocks were slightly ahead of losers on the New York Stock Exchange, where volume came to 556 million shares.

Investors continued buying Treasurys Monday, driving interest rates lower. U.S. government bonds are looking more and more appealing to investors wanting to find a safe place for their money as the economy cools and stocks drop.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.58 percent from 2.68 percent late Monday. Its yield is often used to help set interest rates on mortgages and consumer loans.

The yield on the 10-year note is near the level it last hit in March 2009 when stocks fell to a 12-year low.

“It’s a sign of pessimism that investors accept that low a yield,” said Joe Heider, principal at Rehmann Financial in Cleveland.

Investors who are concerned about the U.S. economy got some bad news from overseas Monday. Japan said its economy grew just 0.1 percent in the second quarter, well below the 1.2 percent growth in the first quarter and short of expectations. The report follows signs last week that both the U.S. and Chinese economies are not growing as fast as earlier in the year.

Meanwhile, the Federal Reserve Bank of New York said manufacturing activity in the state rebounded slightly this month after falling sharply in July. Despite the modest gain, activity did not expand as much as had been forecast, which indicates that economic growth remains tepid.

The New York Fed’s Empire State Manufacturing Index rose to 7.1 in August from 5.1 in July. Economists polled by Thomson Reuters forecast the index would rise to 8. It was 19.6 just two months ago.

Regional manufacturing reports have shown a broad slowdown in recent months, a trend seen in other industries as well. It is particularly discouraging because manufacturing had provided the most consistent signs of growth during the first few months of the year.

The reports are the latest to indicate that the global economy is growing, but not as fast as it did during the first few months of the year. The slowdown has concerned traders who were predicting growth to pick up during the second half.

“We’re scared of our own shadows here,” said Jamie Cox, managing director at Harris Financial Group in Richmond, Va. “We need to readjust our signs from above-trend growth. If not, we’re going to be perennially disappointed.”

The news about the housing market was also discouraging. The National Association of Home Builders said its monthly index of builders’ sentiment fell in August for the third straight month.

Rubino said the weak housing market will force the government to keep interest rates low for a long time. That makes bonds an attractive investment right now because there is little fear that interest rates will climb. Higher rates eat into returns on bonds.

Lowe’s Cos. said Monday its quarterly profit and revenue rose, though both measures fell short of forecasts. The home-improvement retailer also lowered its full-year revenue forecast.

Shares of Lowe’s rose 3 cents $19.62.

Overseas, Japan’s Nikkei stock average fell 0.6 percent. Britain’s FTSE 100 and Germany’s DAX index both rose less than 0.1 percent. France’s CAC-40 fell 0.4 percent.

NEW YORK – The stock market is fulfilling predictions of an uneasy trek through second-quarter earnings season.

Stocks ended a choppy day Monday with a moderate rebound that sent the Dow Jones industrial average up 56 points. Analysts said the advance was due in part to investors’ regaining their optimism about earnings. But that change in sentment was fleeting: After the market closed, IBM reported revenue that fell short of expectations, and investors were back to selling in after-hours trading.

IBM Corp. did issue a more upbeat forecast for its 2010 earnings that in the past would have lifted stocks. But with investors increasingly on edge about signs of trouble in the economy, many decided not to share in IBM’s more confident view of the future.

“The market is caught up by this fear factor over how much the economy has slowed and what does it mean in terms of future earnings growth,” Peter Cardillo, chief market economist for Avalon Partners in New York, said before the market closed.

Stocks fell across a variety of industries in after-hours trading. IBM was hard hit, and investors also punished Texas Instruments Inc. after the chip maker matched but didn’t surpass analysts’ second-quarter revenue predictions.

Analysts have predicted that stock trading would be erratic throughout earnings season. Recent economic data has been disappointing, and investors are having a hard time trusting upbeat forecasts.

Stocks had fallen sharply Friday, taking the Dow down 261 points, after news of a drop in consumer confidence. That was a negative signal for the economy. Stocks also fell after big banks’ earnings had investors doubting whether financial company profits would be curtailed in the future by new federal regulations.

Investors managed to weather some bad news early in the day Monday. The National Association of Home Builders said that its confidence index sank to 14, its lowest level since March 2009. A reading below 50 indicates homebuilders have a negative view of the housing market. The report was the latest in a series of disappointing housing numbers that began appearing after the government’s homebuyer tax credit expired at the end of April.

Alan Gayle, senior investment strategist for RidgeWorth Investments, said Monday’s market moves were in part a response to the announcement of better-than-expected orders for Boeing Co. at the Farnborough International Airshow in Britain. The aircraft maker announced orders at the Farnborough show, including a deal with Dubai-based airline Emirates worth $3.6 billion. Boeing also said GE Capital Aviation Services placed a $3 billion order.

Boeing’s stock rose during regular trading, but it joined other stocks in falling in after-hours trading in response to IBM’s revenue report.

The Dow rose 56.53, or 0.6 percent, to 10,154.43. The Standard & Poor’s 500 index rose 6.37, or 0.6 percent, to 1,071.25, while the Nasdaq composite index, lifted by a rally in tech stocks, rose 19.18, or 0.9 percent, to 2,198.23.

Gainers outnumbered losers by 2 to 1 on the New York Stock Exchange. Volume was light, which can help exaggerate price moves. Consolidated volume came to 4.1 billion shares, down from Friday’s 5.4 billion.

Hundreds of companies are still to report earnings in the next few weeks. On Tuesday, companies from a variety of industries are reporting their results, including Yahoo Inc., Apple Inc., Johnson & Johnson and PepsiCo. Inc. Goldman Sachs Group Inc., which last week settled civil fraud charges with the government, will also report its earnings.

Further readings on the housing market are due out later in the week. They too are expected to show the market is weak and that there are few signs that business will pick up anytime soon. Economists predict reports on housing starts, building permits and sales of previously occupied homes will show declines for June.

The building permits data is likely to be particularly discouraging because it is used as a gauge for future construction. Investors have become more concerned with forecasts for the future rather than past reports, so anything that indicates weakness in the coming months and quarters is being met with disappointment.

Housing stocks fell on the homebuilders’ survey. D.R. Horton Inc. fell 13 cents to $9.97. Toll Bros. Inc. dropped 20 cents to $16.23, while Lennar Corp. fell 19 cents to $13.82.

IBM rose $1.76 to $129.79 in regular trading, lifted by investors’ optimism. But it fell $5.29 in after-hours trading. Texas Instruments had gained 78 cents and closed at $25.55 in regular trading. It later fell $1.42.

Boeing rose $1.28 to $63.18 in regular trading, then retreated 57 cents after the market closed.

Investors were encouraged by Halliburton Co.’s earnings report and prospects for land-based business growth. The energy services company’s stock jumped after it said a ban on offshore drilling would only cut earnings by 5 cents to 8 cents per share per quarter. Halliburton rose $1.66, or 6 percent, to $29.17.

At the same time, toy maker Hasbro Inc.’s earnings showed that shoppers are staying out of stores while unemployment remains high. Hasbro’s earnings rose, but toy sales dropped adding to worries about the uncertain labor market and its effect on consumer spending. Hasbro fell 15 cents to $39.35.

Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.96 percent from 2.93 percent late Friday.

European markets all dipped. Moody’s Investors Service cut its rating on Ireland’s debt. Ratings agencies have regularly slashed ratings on many European countries’ debt in recent months as mounting deficits dim the hopes for strong growth.

Britain’s FTSE 100 fell 0.2 percent, while Germany’s DAX dipped 0.5 percent and France’s CAC-40 fell 0.4 percent.

Japan’s Nikkei stock average fell 2.9 percent.

NEW YORK – A darkening view of the economy sent bond market interest rates to their lowest level in 14 months and kept many investors out of the stock market.

The yield on the 10-year Treasury note, considered a benchmark because it’s used to set rates on consumer loans including mortgages, fell to 3.03 percent Monday, its lowest point since late April 2009. At that time, the markets were still recovering from the devastation of the financial crisis and collapse in stocks.

Investors felt safer making their bets in the bond market and many avoided any kind of stock trades. All the major stock indexes fell by single digits. The New York Stock Exchange traded less than a billion shares on its selling floor, a number that’s more likely to be seen in August or late December than in June.

Treasurys benefited from investors’ growing gloom. The latest bit of bad economic news came from the Commerce Department, which said consumers saved more than they spent last month. The government said consumer spending rose 0.2 percent last month, just above the 0.1 percent growth forecast by economists polled by Thomson Reuters. However, personal income rose 0.4 percent.

Consumer spending remains a sticking point for the economy, which won’t have a strong recovery until consumers fell more confident about buying again. With the recovery looking more uncertain, many investors are choosing to go with bonds because they are considered stable. And investors are willing to put up with bonds’ lower returns simply because they are safer than stocks.

The 10-year note’s 3.03 percent yield compared with 3.11 percent late Friday. It hasn’t been this low since April 28 of last year.

Investors are also growing anxious ahead of the release of the government’s June employment report on Friday. The May report was troubling because it showed that private employers are hiring few workers. That hurts the economy since consumers aren’t likely to spend if they aren’t working or are worried about losing their jobs.

Burt White, chief investment officer at LPL Financial in Boston, said the coming weeks will be important for investors because of the jobs report on Friday and the announcement of earnings for the April-June quarter. White said stronger profits could convince businesses to start investing more. That, economists hope, will lead to more hiring.

“Businesses have to commit to this recovery,” White said.

The Dow Jones industrial average fell 5.29, or 0.1 percent, to 10,138.52 after being up 58 points.

The broader Standard & Poor’s 500 index fell 2.19, or 0.2 percent, to 1,074.57. The Nasdaq composite index fell 2.83, or 0.1 percent, to 2,220.65.

Commodities, seen as risky investments along with stocks also fell, but their drop was also influenced by a stronger dollar. A rise in the dollar made commodities more expensive for foreign buyers. Crude oil fell 61 cents to $78.25 per barrel on the New York Mercantile Exchange, while gold fell.

The drop in commodities sent raw materials producers falling. Exxon Mobil Corp. 63 cents, or 1.1 percent, to $58.47, while gold producer Freeport-McMoRan fell $1.91, or 2.9 percent, to $64.66.

Meanwhile, tobacco stocks rose after the Supreme Court said it wouldn’t take up a case between the government and tobacco makers. The decision prevents the government from getting billions of dollars from makers of cigarettes for anti-smoking campaigns. Reynolds American Inc. rose $2.08, or 4.1 percent, to $53.45, and Altria Group Inc., parent of Philip Morris USA, rose 64 cents, or 3.3 percent, to $20.34.

A separate decision from the court signaled that gun control laws in Chicago and a nearby suburb likely would be struck down by a lower court. That gave a boost to shares of gun makers. Smith & Wesson rose 23 cents, or 5.6 percent, to $4.33, while Sturm, Ruger & Co. climbed 33 cents, or 2.2 percent, to $15.39.

Retailers were hurt by the consumer spending report. Macy’s Inc. lost 20 cents, or 1.1 percent, to $18.82, and Amazon.com Inc. fell $3.20, or 2.6 percent, to $117.80. Home Depot Inc. fell 61 cents, or 2 percent, to $29.59.

Eight stocks fell for every seven that rose on the NYSE. Volume on the exchange floor came to 942 million shares. Consolidated volume, which includes shares traded on other exchanges, totaled 3.94 billion, also a very low figure.

The Russell 2000 index of smaller companies fell 3.57, or 0.6 percent, to 641.54.

Britain’s FTSE 100 rose 0.5 percent, Germany’s DAX index gained 1.4 percent, and France’s CAC-40 rose 1.6 percent. Japan’s Nikkei stock average fell 0.5 percent.