NEW YORK - The Dow Jones industrial average had its first triple-digit drop of 2010 as mounting losses from loans at J.P. Morgan Chase & Co. and a disappointing consumer sentiment reading sent investors rushing from stocks.
Financial stocks led the market lower Friday, pulling major stock indexes down about 1 percent from 15-month highs. The Dow lost almost 101 points, its steepest drop since Dec. 31. Interest rates fell in the bond markets as investors bought Treasurys in search of safety.
J.P. Morgan, regarded as one of the strongest U.S. banks, warned investors it was too soon to say that losses on mortgages and other loans have peaked. The weakness in J.P. Morgan's consumer business hurt other financial stocks, which led the rest of the market lower.
Investors took little solace from a much stronger than expected profit report late Thursday from Intel Corp., the biggest maker of computer chips.
Commodity prices slumped as the dollar turned higher, and a disappointing report on consumer sentiment also weighed on the market. The preliminary Reuters/University of Michigan consumer sentiment index for January rose to 72.8 from 72.5 in late December but came in weaker than economists had forecast.
The news from J.P. Morgan brought concerns about profits at other big banks, many of which post results next week.
The Dow on Thursday closed above 10,700 for the first time since October 2008 and has climbed 62.1 percent since March, though it's still down 25.1 percent from its peak in October 2007.
The market will get additional signals about the economy next week as many more companies report earnings. U.S. markets are closed on Monday for Martin Luther King Jr. Day.
