* Investors eye FOMC meeting next week
* U.S. consumer sentiment index declines in June
* JPMorgan's private equity unit to become independent;
stock off 1.6 pct
* Dow off 0.8 pct, S&P 500 and Nasdaq down 0.7 pct
By Angela Moon and Alison Griswold
NEW YORK, June 14 (Reuters) - U.S. stocks extended their
slide on Friday, with the Dow losing more than 100 points as
investors booked profits a day after the S&P 500 recorded its
second-best session of the year and data showed consumer
sentiment cooled off in June.
On Thursday, the S&P 500 scored its biggest gain since Jan.
2, ending a three-day decline, as stronger-than-expected
economic data helped reassure investors who had been anxious
about an expected slowdown in the Federal Reserve's economic
In Friday's session, the Fed and other central banks were
back in focus as investors worried about how soon the stimulus
programs will be trimmed.
Financial stocks led the market's decline to near session
lows after data showed consumer sentiment edged off a six-year
high in June while manufacturing output picked up a bit last
month after two straight months of declines, suggesting the
economy remains on a moderate growth path.
The S&P financial sector index slid 1.3 percent.
The market is "giving back some of those gains from
yesterday, which I think really caught people by surprise ...
and I certainly think the economic news wasn't bullish," said
Joe Saluzzi, co-manager of trading at Themis Trading in Chatham,
"We go through these ups and downs," he said. "I would still
say this market is certainly driven by central banker thoughts
and currency markets like the Japanese yen."
The dollar extended losses against the yen on Friday,
putting it on course for its worst week since July 2009 as
volatile stock markets had investors unwinding bets against the
"Carry trades are the big deal," Saluzzi said. "It hasn't
been a profitable trade over the last month, although for a
while, that was considered the place to be. But now it's sort of
Carry trades refer to the practice of borrowing money
cheaply to invest in higher-yielding assets and make a profit.
The Dow Jones industrial average was down 119.91
points, or 0.79 percent, at 15,056.17. The Standard & Poor's 500
Index was down 11.42 points, or 0.70 percent, at
1,624.94. The Nasdaq Composite Index was down 23.99
points, or 0.70 percent, at 3,421.38.
By Friday afternoon, the Dow had swung about 159 points from
its session high to its intraday low. For the last 14 days, the
Dow's average swing has been 192 points.
DuPont was the Dow's biggest percentage decliner. Its
stock fell 2.6 percent to $52.49 after a brokerage cut its price
target on the blue-chip stock following the company's
second-quarter pre-announcement on Thursday.
JPMorgan Chase & Co shares fell 2 percent to $53.09
after the company said its private equity unit, One Equity
Partners, will become independent from the bank and raise future
funds from an external group of partners. The stock was the
Dow's fourth-largest percentage decliner.
Bank of America shares fell 1.1 percent to $13.07
and ranked among the Dow's 10 worst performers.
The SPDR Financial ETF XLF also lost 1.2 percent.
With the day's decline, the three major U.S. stock indexes
were on track to end the week down about 1 percent.
Anxiety about the longevity of looser monetary policy around
the world has roiled markets recently. Nerves were stretched
further this week when the Bank of Japan held policy steady.
The prospect that the accommodative stance of the Fed and
other central banks could be pulled back sooner than expected
has prompted traders to rethink bets that were built around that
Attention is now focused on the Fed's policy-setting meeting
next week after Chairman Ben Bernanke's comments on May 22
raised concerns that the Fed could cool its stimulus efforts in
the near term.
Faring better than the overall market, the S&P utilities
sector index was flat.
Decliners beat advancers on the New York Stock Exchange by a
ratio of about 3 to 2 by afternoon trade.
In contrast with the market's downturn, shares of Groupon
shot up 14 percent to $7.85 after Deutsche Bank raised
its rating to "buy" from "hold", according to Benzinga.com.
Thomson Reuters/University of Michigan's preliminary index
on consumer sentiment fell to 82.7 in June after touching a near
six-year high of 84.5 in May. June's reading was the second
highest in the last eight months, suggesting Americans were far
from gloomy about their long-term prospects.
The overall U.S. producer price index rose more than
expected in May as gasoline prices rebounded, the Labor
Department reported. But underlying inflation pressures remained
muted, which could bolster the argument against an early
pullback in the Federal Reserve's stimulus program.