The Wall Street Journal-20080206-Citi- Home Depot- Alcoa Lead Retreat- Whirlpool- Sands Buck the Downturn- -Ugly as the Tape-

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Citi, Home Depot, Alcoa Lead Retreat; Whirlpool, Sands Buck the Downturn; 'Ugly as the Tape'

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Wall Street's ticker-tape parade ended abruptly yesterday.

Another sign that the U.S. is sliding into recession wiped out much of the gains for banking stocks such as Citigroup, stores such as Home Depot and industrial companies such as Alcoa since the Federal Reserve's rate cuts. Investors fled to stocks less tied to the U.S. economy, such as Whirlpool, Health Net and Las Vegas Sands.

Financial stocks faced the first lines of selling after The Wall Street Journal reported lenders were tightening standards for loans to the corporate sector, a sign that the credit crunch is spreading.

Citigroup fell $2.17, or 7.4%, to $27.05, the biggest percentage decliner on the Dow Jones Industrial Average as it plunged 370.03, or 2.93%, to 12265.13.

NYSE Euronext tumbled 11.70, or 14%, to 71.03 after the operator of the New York Stock Exchange and Euronext said costs rose, and it warned that savings from its merger would take longer to realize than previously hoped.

Consumer-discretionary stocks also were weaker, and retail trade was one of the areas that showed declines in the services survey.

Barnes & Noble fell 3.55, or 11%, to 29.49 after J.P. Morgan Chase cut its rating on the bookseller's shares to "neutral," saying recent gains belie a weak holiday sales report.

Among Dow components, Home Depot shed 1.36, or 4.6%, to 27.99.

There were a few strongholds among retailers. Avon Products tacked on 1.80, or 5%, to 37.81. The direct seller of cosmetics posted fourth-quarter revenue growth, thanks to burgeoning overseas demand for its beauty and health products.

Among industrial companies, Alcoa fell 1.41, or 4.1%, to 32.67.

Defensive areas, where consumers continue spending even in times of hardship, escaped the worst of the selling. Yesterday, those sectors included pockets of health care, appliance makers and casinos.

Health Net added 46 cents, or 1%, to 45.95 after the health-care administrator posted an increase in fourth-quarter profit, thanks to increased enrollment in its plans.

Illumina (Nasdaq) rose 6.61, or 10%, to 71.50 after the maker of gene-analysis products for biotechnology research forecast growth in first-quarter revenue.

Las Vegas Sands added 7.45, or 9.1%, to 88.90 after the casino operator rang up windfall growth in fourth-quarter revenue, helped by heavy betting at a Macau location.

Whirlpool surged 8.41, or 10%, to 90. The maker of appliances posted record international sales, and it said strength overseas will offset weakness in U.S. shipments this year.

Technology stocks continued to feel the wrath of sellers, and information technology was another sector where the ISM index showed contraction in January. Apple (Nasdaq) fell 2.29, or 1.7%, to 129.36 even after the consumer-electronics maker launched a souped-up version of its iPhone.

National Semiconductor fell 1.43, or 7.5%, to 17.59 after the chip maker warned third-quarter sales would be weaker than previously expected because of disappointing demand from cellphone-handset makers in China and elsewhere. Among other chip-related issues, Qualcomm (Nasdaq) slid 1.13, or 2.7%, to 40.72.

Yahoo (Nasdaq) fell 35 cents, or 1.2%, to 28.98 after Banc of America Securities cut its rating on the Internet portal's shares to "neutral" from "buy."

Some airlines benefited from a slide in oil prices, which were hurt by the implications of a U.S. recession for global growth.

AMR, parent of American Airlines, added 23 cents, or 1.6%, to 14.64; and Continental Airlines tacked on 26 cents to 28.20.

Overall for the market, "it doesn't feel as ugly as the tape looks," said Edward Schreier, head of Deutsche Bank Securities' NYSE floor brokerage, but there were "some things for sale at the closing bell" as large blocks of shares failed to find buyers straight away.

"When you get to this moment, sometimes the buyers just wait for the next day," Mr. Schreier said.