US stocks slipped on Tuesday after a surprise drop in retail sales and a cut in quarterly dividends by banking giant Goldman Sachs.
The Dow Jones industrial average dropped 137.63 points, or 1.71%, to 7,920.18. The Standard & Poor's 500 Index fell 17.23 points, or 2.01%, to 841.50. The Nasdaq Composite Index declined 27.59 points, or 1.67%, to 1,625.72.
Government data showing US retail sales dropping a surprise 1.1% in March after two months of gains.
Stocks of retailers, big manufacturers, technology and energy companies were among the casualties. The S&P retail index fell 2.5%.
Goldman Sachs shares slid 11.6 % to $US115.11, a day after the company said it would raise $US5 billion by issuing common stock and posted a stronger-than-expected quarterly profit.
Goldman said after the market close Monday that it had net profit of $US1.81 billion for the 2009 first quarter raising expectations that the financial turmoil which slammed the economy was beginning to ease.
But the market ignored the profit and reacted negatively to Goldman's moves to cut dividends and raise capital.
