[R]1:00PM New York – Sears Holdings led the decliners in the retail stocks. Financial and real estate stocks declined.[/R]

Stocks declined after October retail sales declined 2.8% from September and dragged retail, consumer and financial stocks declined.

Of the S&P 500 index stocks, 35 increased, 463 rose and 1 was unchanged.

Abercrombie & Fitch Co (ANF: chart) fell 14% or $2.87 to $19.55 after it reported third quarter net income of $63.9 million and earnings per share of $0.72 compared to net income of $117.6 million and earnings per diluted share of $1.29 a year ago.

The stock has declined from $49.30 of peak in October 2007 to the low last seen October 2002.

Agilent Technologies, Inc (A: chart) fell 1% or $0.23 to $20.74 after the electronic measurement business reported 2% revenues increase to $1.48 billion for the fourth fiscal quarter. Fourth quarter net income was $231 million or $0.64 per diluted share compared to $180 million or $0.46 per share a year ago.

American Express (AXP: chart) dropped 58 cents to $20.22 after financial stocks fell sharply in the trading. CIT Group Inc (CIT: chart) dropped 33 cents to $3.92, Bank of America declined 56 cents to $16.51, Goldman Sachs dropped $2.82 to $67.20 Morgan Stanley (MS: chart) declined 89 cents to $12.34.

Citigroup Inc (C: chart) dropped 48 cents to $8.98 after the Wall Street Journal reported that the company plans to lay off 10,000 staff.

Cheesecake Factory (CAKE: chart) dropped 6% or 44 cents to $6.83 and stock has fallen to the level last seen in March 1999.

Genworth Financial, Inc (GNW: chart) climbed 5.1% or 7 cents to $1.60 after the company announced it borrowed $930 million of its $1.7 billion available credit facilities to repay $1.1 billion of senior notes maturing in second quarter 2009.

The Estee Lauder Companies Inc (EL: chart) dropped 4.0% or $1.27 to $30.56 after analysts downgrade on the worries that company may suffer in the current decline in retail sales with most discretionary consumer spending falling sharply.

Hewitt Associates, Inc (HEW: chart) rose 6.4% or $1.63 to $26.05 after the human resources services provider reported Friday it expects to earn between $2.35 and $2.45 per share in 2009. Revenues and operating earnings are expected to rise in low single digits in the year.

J. C. Penney Company, Inc (JCP: chart) dropped 9% or $1.67 cents to $17.61 after the retailer with 1,067 JCPenney department stores reported earnings per share from continuing operations of $0.55 for the third quarter compared with $1.17 a year ago. Net income in the third quarter was $124 million versus $261 million last year.

Lee Enterprises, Incorporated (LEE: chart) plunged 19.7% or 35 cents to $1.40 after the newspaper publisher of the St. Louis Post Dispatch and other papers reported fourth quarter net profit fell 73% to $5.4 million or 12 cents a share.

Nokia Corporation (NOK: chart) decreased 12.2% or $1.73 to $12.45 after the maker of mobile phone on Friday issued a profit warning for the fourth quarter and said it expected handset sales to fall in 2008 to 1.24 billion for the industry and fall again in 2009.

Nordstrom, Inc (JWN: chart) plunged 7.2% or 98 cents to $11.98 after the department store chain lowered its 2008 profit estimate. The company earned $71 million, or $0.33 per diluted share, compared to $166 million or $0.68 per diluted share a year ago. Sales for the quarter dropped 8.4% to $1.81 billion.

QUALCOMM Incorporated (QCOM: chart) lost 4.8% or $1.68 to $33.14 after the stock has hit a low of $32.36. The stock has declined nearly 40% from its recent high of $55 in August.

Sprint Nextel Corporation (S: chart) gained 12.5% or 14 cents to $2.38, recently it reported third quarter net revenues of $8.8 billion and a diluted loss per share of 11 cents. As of Sept. 30, the company had $4.1 billion of cash and cash equivalents. I

Sears Holdings Corporation (SHLD: chart) fell 10% or $4.94 to $39.66 after October retail sales dropped 2.8%.