Wall Street retreats despite U.S. stimulus plan passed in House

NEW YORK, Feb. 13 -- Wall Street traded lower on Friday as investors continue to observe the U.S. government's measures to revive economy.

Economic data released Friday suggested that confidence among U.S. consumers fell as unemployment rate surged to record high. The Reuters/University of Michigan preliminary index of consumer sentiment fell to 56.2, from 61.2 in January. It is the first drop in three months and the lowest level in nearly 28 years.

In earnings news, Pepsico reported that its fourth-quarter profit dropped, but its adjusted results were in line with analysts' expectations.

Shares rebounded sharply from session's lows in the last hour of trading Thursday after a report suggesting that the U.S. government is considering a plan to subsidize the deeply troubled homeowners. However, there was no more details of the plan released Friday.

The U.S. House of Representatives approved the 787-billion-U.S.dollar economic stimulus package Friday. The Senate is expected to follow later the day. But investors shrugged off the news waiting for more commitment on financial rescue plan.

Investors are also focused on the Group of Seven meeting which is held in Rome, Italy on Friday to address issues in the world financial market and stimulus packages.

The Dow fell 82.35, or 1.04 percent, to 7,850.41. It was the lowest close since Nov. 20, when the index hit a five-and-a-half month low.

The Standard & Poor's 500 index lost 8.35, or 1.00 percent, to 826.84, and the Nasdaq composite index decreased 7.35, or 0.48 percent, to 1,534.36.