State Street Leads Banks Down on 'Tepid' Outlook

NEW YORK (TheStreet) -- State Street (STT) was the loser on a rough Thursday day for the banking sector and the broad market, with shares sliding 2.5% to close at $64.48.

The Dow Jones Industrial Average was down 1.4%, while the S&P 500 pulled back 1.2% and the NASDAQ Composite ended 1.5% lower, as investors reacted to a mixed batch of economic reports.

The Department of Commerce said retail sales in the United States increased 0.3% during February from January, and were up 1.5% from a year earlier. The sequential growth number came in slightly ahead of the consensus estimate of 0.2% among economists polled by Thomson Reuters.

The Department of Labor said initial unemployment claims for the week ended March 8 declined by 9,000 to 315,000, which was better than the expected 330,000 new claims. The four-week moving average declined by 6,250 to 330,500.

Goldman Sachs cut its first-quarter GDP estimate for the United States by two-tenths to 1.5%. "Although February retail sales rose a bit more than expected, negative back revisions more than offset the front-month surprise," Chief Economist Jan Hatzius wrote in a note to clients.

The recent pattern of lackluster data out of China continued, with industrial output during January and February was up 8.6% from a year earlier, however, that was the slowest growth rate since April 2009.

The KBW Bank Index (I:BKX) was down 0.8% to 69.93, with all 24 component stocks ending with declines.

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