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

-- Reported by Jeanine Poggi in New York

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