Stocks plunge on Citigroup, retail sales news

Stocks today declined on news that retail sales fell 0.4% in December, the latest indication the U.S. economy is slowing at a rapid pace. Citigroup Inc. also released weak quarterly results, reflecting the impact of subprime turmoil.
The Dow Jones industrial average closed down 277.04, or 2.17%, at 12,501.11; the S&P 500 fell 35.30, or 2.49%, ending at 1,380.95; and the Nasdaq composite closed down 60.71, or 2.45%, at 2,417.59. All numbers are preliminary.
“Retail sales are in a clear slowing mode,” Robert Brusca, chief economist at consultancy FAO Economics, wrote in a note to clients. “The downward revision to the two previous months coupled with the weakness in December has undercut fourth-quarter nominal trends. Moreover during this period inflation flared, meaning that real retail sales have decelerated even more sharply.”