Stocks point to lower open on retail sales drop

Wall Street appears to be heading to a sharply lower opening after economic data raised the possibility that the country is either in a recession or moving toward one. The government reported that retail sales plunged in September by 1.2 percent last month — almost double the 0.7 percent drop analysts had expected.

The news was sobering because consumer spending accounts for two-thirds of total U.S. economic activity. Wall Street has refocused its attention on the economy now that the government is working to ease the stagnant credit markets.

Meanwhile, the Labor Department says the producer price index, which measures inflation pressures before they reach the consumer, fell 0.4 percent in September, driven by lower energy costs. That decline matched analysts’ expectations.

In pre-market trading, Dow Jones industrial average futures were down 215 points at the 9,147 level, having been down moderately before the reports.