MIND THE GAP: Retailers Gap Inc. and Aeropostale each lost more than 14 percent Friday after cutting their profit forecasts for the year, in part because of higher costs for raw materials and sluggish sales. That was a worrying sign for investors who had counted on shoppers to lead a recovery in spending.
DOLLAR GAINS: Concerns about the economy sent the dollar and government bonds higher.
THE INDEXES: The Dow fell 93.28 points, or 0.7 percent, to 12,512.04. The Standard & Poor's 500 index lost 10.33, or 0.8 percent, to 1,333.27. The Nasdaq composite dropped 19.99, or 0.7 percent, to 2,803.32.