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10A Daily News – Friday, September 2, 2011 A four-day rally on the stock market ended Thursday with a slump led by banks. Many investors also sold stocks ahead of the gov- ernment's monthly jobs report Friday, fearful that it might revive wor- ries that the U.S. could enter another recession. Goldman Sachs fell 3.5 percent after regula- tors announced enforce- ment actions against a former subsidiary of the bank over mortgage and foreclosure practices. Bank stocks fell more than the rest of the mar- ket as investors worried that other banks might Banks stocks lead market lower, ending 4-day rally Wall Street NEW YORK (AP) — face similar reprisals. Financial stocks in the S&P 500 dropped 2.4 percent, the most of the 10 company groups that make up the index. ''There's obviously a lot of fear in the market- place,'' said Ann Milet- ti, managing director and senior portfolio manager at Wells Capi- tal Management. ''Right now, the market's just lacking confidence.'' The Dow Jones indus- trial average fell 119.96 points, or 1 percent, to close at 11,493.57. It rose as many as 103 • RESIDENTIAL • COMMERCIAL • NEW CONSTRUCTION • SALES • SERVICE • REPAIRS www.CascadeComfort.com Tehama Counties Factory Authorized Bryant Dealer Whatever it takessm CASCADE COMFORT SERVICE INC. Air Conditioning & Heating Lic #593323 24 HOUR SERVICE 530 529-1990 Your First Call For Comfort COMPLETE AUTO REPAIR All makes and models. We perform dealer recommened 30K, 60K, 90K SERVICES AT LOWER PRICES Smog Check starting at $ (most cars and pick-ups) 2595 + cert. Pass or FREE retest 527-9841 • 195 S. Main St. points shortly after 10 a.m., when a key manu- facturing report showed evidence of growth in August. Retailers including Macy's and Costco rose after reporting strong sales last month, despite wild swings in the stock market and worries about the economy. Goldman Sachs, in a settlement with a New York state banking regu- lator, agreed to stop con- troversial mortgage- related practices such as the ''robo-signing'' of documents. The settle- ment was a condition to Goldman's sale of its Litton Loan Servicing $10 OFF Mention this ad for SERVICE CALL subsidiary, where the practices occurred. Also Thursday, the Federal Reserve said it ordered Goldman to review how foreclosures were handled at Litton. The Fed said there was a ''pattern of misconduct and negligence'' at Lit- ton. Stock indexes traded mixed for much of the day but turned lower after the Fed's announcement on Gold- man Sachs came out at 1:30 p.m. They drifted lower for the rest of the afternoon. Other banks also fell. Citigroup Inc. lost 3.4 percent and PNC Finan- cial Services Group Inc. fell 3.2 percent. Bank of America Corp., which is facing many lawsuits over its dealings in mortgage-backed securi- ties, also fell 3.2 per- cent. The regulatory actions showed that problems related to the mortgage crisis in 2008 remain far from over, said Quincy Krosby, market strategist at Pru- dential Financial. She also said investors were nervous ahead of the Labor Department's jobs report. The Standard & Poor's 500 index fell 14.47 points, or 1.2 per- cent, to 1,204.42. SAIC Inc. fell 13.5 percent, the most in the S&P 500, after the tech- nology company issued a full-year earnings forecast that was below analysts' expectations. The company, which provides engineering and technology services to the military and other agencies, cited tighten- ing government budgets. The Nasdaq compos- ite index fell 33.42, or 1.3 percent, to 2,546.04. All three indexes had their worst August since 2001 after fears of an economic slowdown in the U.S. and debt issues in Europe put investors on edge. Trading volume was relatively light at 4.3 RED BLUFF COLLISION ✪Windshield Replacement $ starting at 200 ✪ Auto Detailing $ 50 off your 1st visit FREE Estimates 530.527.6160 915 Madison St., Red Bluff The Original billion shares. Many traders were on vaca- tion. Low volume sug- gests that relatively few investors were driving the market's gains and losses. Rob Lutts, president and chief investment officer of Cabot Money Management, said he expected volume to remain very low until early next week, when many traders return to work after Labor Day. ''That's when we'll see what's really going on,'' Lutts said. Retailers rose after several companies reported sales gains that beat analysts' estimates. August is an important month for back-to- school shopping, which can account for up to 25 percent of retailers' annual revenue. Macy's Inc. rose 2.1 percent; Costco Wholesale Corp. rose 1.2 percent. About three stocks fell for every one that rose on the New York Stock Exchange. 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