Stocks fell for a third consecutive session Friday on concerns that the White House's plan to limit banks and China's reduction of lending will mean a broader cutback in lending. Questions also arose over whether U.S. Federal Reserve (Fed) Chairman Ben Bernanke's term will be renewed. Stocks also were vulnerable to a drop after surging 3 percent over the past two weeks, with the major indexes hitting 16-month highs on Monday. In the three-day sell-off that started Wednesday, stocks-as measured by the Standard & Poor's 500 index-have lost 5 percent. Bernanke's term ends in a week, but the U.S. Senate lacks the 60 votes to force a confirmation vote, with more Democratic senators joining Republicans in saying they plan to vote against granting the central-bank chief a second term. In economic news, unemployment in December rose in 43 of the 50 U.S. states and the city of Washington. The trend was a reversal from November, when a majority of states saw unemployment rates decline from the previous month. The U.S. dollar fell versus the euro and the yen after rising for the last few sessions. Light sweet crude oil for March delivery fell $1.54 to $74.54 a barrel on the New York Mercantile Exchange. Gold fell $13.50 to $1,089.70 an ounce. The Dow Jones industrial average fell 216.90, or 2.1 percent, to 10,172.98. General Electric reported weaker revenue and profits versus a year ago that still beat estimates. The conglomerate reported higher sales and profit versus the third quarter and said it sees solid growth next year. GE shares rose 2.6 percent. McDonald's reported higher quarterly sales and profits, and shares of the fast-food giant rose modestly. American Express reported higher profits on flat revenue, and shares of the financial-services company fell 5 percent. The broader S&P 500 fell 24.72, or 2.2 percent, to 1,091.76. The technology-heavy Nasdaq composite index fell 60.41, or 2.7 percent, to 2,205.29. Google reported a jump in revenue due to a rebound in the advertising market, but its shares fell more than 5 percent. The New York Stock Exchange composite index fell 143.85 to 7,030.61. The American Stock Exchange composite index fell 27.05 to 1,820.33. And the Russell 2000 index fell 11.24 to 617.12.
