Consumer Sentiment Falls Unexpectedly

(Updated with stock prices.)

NEW YORK (TheStreet) -- Retail sales may be inching higher, but consumer sentiment is telling a very different story.

The Reuters/University of Michigan Surveys of Consumers fell unexpectedly in October to 69.4 from 73.5 last month. Economists expected the reading to hold steady at 73.5.

But what consumers are saying and doing seem to be contradictory, as retail sales were up 0.5% in September excluding autos.

Nonethless, shares of retailers are in the red after the report, with the S&P Retail Index sinking 1.7% to 389.26.

Some of the biggest losers are Netflix(NFLX Quote), which is off 4.5% to $48.08, Macy's(M Quote), which is falling 3% to $19.55, Saks(SKS Quote), which is tumbling 3.8% to $6.31, Abercrombie & Fitch(ANF Quote), which is dropping 2.2% to $36.58, and Lowe's(LOW Quote), which is slipping 2.2% to $21.18.

-- Reported by Jeanine Poggi in New York

Follow TheStreet.com on Twitter and become a fan on Facebook.