May 23 (Bloomberg) -- U.S. stocks fell, extending the market's biggest weekly retreat since February, on concern a worsening housing recession and rising energy costs will prolong the slump in corporate profits.

Ford Motor Co. declined for a sixth day after the second- biggest U.S. automaker said consumers are buying fewer trucks as fuel prices climb. Nordstrom Inc. led retailers to a six-week low as crude rose. Homebuilders posted their biggest weekly tumble since 2001 after a report showing sales of previously owned homes matched an all-time low in April. Goldman Sachs Group Inc. dropped for a ninth day, the longest losing streak since the company went public in 1999, on concern brokerage earnings will be hurt by further writedowns on mortgage-related assets.

The Standard & Poor's 500 Index slid 18.42 points, or 1.3 percent, to 1,375.93. The Dow Jones Industrial Average lost 145.99, or 1.2 percent, to 12,479.63. The Nasdaq Composite Index sank 19.91, or 0.8 percent, to 2,444.67. Five stocks dropped for each that rose on the New York Stock Exchange.

``The rally that we've had over the last couple of months has petered out,'' said Dean Gulis, part of a group that manages about $3 billion in Bloomfield Hills, Michigan, for Loomis Sayles & Co. ``The basic concern is the relentless climb in oil prices. People view that as a major drag on the consumer. Housing prices are problematic, and some of the industries that had rallied in anticipation we might be coming to some kind of a bottom are starting to fall again.''

All 10 industries in the S&P 500 declined. Profits have fallen 18 percent on average for the 461 companies in the index that have reported first-quarter results, the group's third straight slump in quarterly earnings, according to data compiled by Bloomberg.

Weekly Slump

The Dow average lost 3.9 percent this week, while the S&P 500 fell 3.5 percent and the Nasdaq dropped 3.3 percent. Benchmark indexes posted their biggest retreat of the week on May 21 after minutes from the Federal Reserve's April meeting signaled that the central bank may be finished cutting interest rates.

Ford decreased 29 cents, or 4.1 percent, to $6.87 and lost more than 15 percent over the past five days, its worst weekly slide since 2002. Ford estimates that full-size pickups fell to 9 percent of the U.S. market compared with 14.1 percent in 2007, Chief Executive Alan Mulally told reporters late yesterday after a speech in Detroit. Such figures don't include sales to corporate fleets or rental-car companies.

``We've never seen movement this fast,'' Mulally said. ``This is a fundamental change.''

Ford's sales of the F-Series pickup, the best-selling U.S. vehicle, slumped 16 percent in the first four months of the year, compared with an industry truck decline of 14 percent, according to Autodata Corp. The F-Series accounts for about one in every four vehicles Ford sells in the U.S.

GM, D.R. Horton

General Motors Corp. fell the most in the Dow average, tumbling 4.5 percent to $17.60 after pledging $215 million, $15 million more than its initial estimate, to help end a 12-week strike at a supplier that reduced production at the largest U.S. automaker by 230,000 cars and trucks this quarter. The shares lost 15 percent in the week.

D.R. Horton Inc. led homebuilders in S&P indexes to a sixth- straight decline after the National Association of Realtors said sales of existing homes declined 1 percent to an annual rate of 4.89 million from 4.94 million in March. The median price dropped 8 percent from April last year, the second-biggest decline ever, as the number of houses on the market surged. D.R. Horton retreated 3.1 percent to $12.98. The S&P Supercomposite Homebuilding Index slumped almost 16 percent in the week.

`A Big Issue'

``Housing prices are still falling, and that's a big issue for this market,'' David Joy, who helps oversee about $160 billion as chief market strategist at RiverSource in Minneapolis, said in a Bloomberg Television interview. ``That really speaks to the health of the consumer sector.''

Nordstrom, operator of more than 100 department stores, lost 4.2 percent to $33.17 and led the S&P 500 Retailing Index to a 1.3 percent tumble. Wal-Mart Stores Inc., the largest retailer, retreated 30 cents to $55.75. Darden Restaurants Inc., the owner of the Olive Garden and Red Lobster restaurant chains, slumped 4.4 percent to $31.74.

Crude oil for July delivery rose $1.31 to $132.12 a barrel as the dollar fell against the euro, prompting investors to buy commodities as a hedge against the slumping currency.

Energy shares, led by Exxon Mobil Corp. and Schlumberger Ltd., fell despite the gain in crude. Exxon lost 2 percent to $90.70 and Schlumberger dropped 2.4 percent to $100.03.

`Very Problematic'

The AMEX Airline Index lost 4.3 percent to an all-time low, capping its worst week since September 2001. AMR Corp.'s American Airlines and UAL Corp.'s United Airlines, the two largest U.S. carriers, have raised fares as much as $60 round trip to recoup record jet-fuel costs. AMR lost 3.7 percent to $6.32 and UAL dropped 3.7 percent to $6.32.

``Oil is certainly very problematic for autos and airlines and we are starting to see demand destruction in the U.S. at current prices,'' said Simon Carter, who manages $3 billion as head of North American equities at Aegon Asset Management in Edinburgh.

Financial shares in the S&P 500 lost 1.9 percent as a group. Lehman Brothers Holdings Inc. dropped 6.2 percent to $36.11. Goldman Sachs, the world's largest securities firm, fell 2.6 percent to $172.64. Morgan Stanley retreated 2.6 percent to $41.83.

Three analysts have switched their earnings expectations for Lehman to a loss in the second quarter after the firm said hedges used to offset declines in the value of mortgage assets didn't work well. Seven analysts have reduced their profit estimates for Goldman and Morgan Stanley in the last two weeks.

Bud's Bounce

Anheuser-Busch Cos., the maker of Budweiser beer, jumped to a record on a Financial Times report that it may receive a bid valued at $46 billion from larger brewer InBev NV. The FT's Alphaville blog cited executives and bankers it didn't identify. Anheuser-Busch, whose second-largest shareholder is Warren Buffett's Berkshire Hathaway Inc., rose 7.7 percent to $56.61.

Apple Inc. advanced 2.3 percent to $181.17. Merrill Lynch & Co. raised its share-price estimate for the maker of the iPod media player by 16 percent to $215, citing a ``significant increase'' in sales generated by the iPhone.

The Russell 2000 Index, a benchmark for companies with a median market value 95 percent smaller than the S&P 500's, fell 1.2 percent to 724.1. The Dow Jones Wilshire 5000 Index, the broadest measure of U.S. shares, dropped 1.2 percent to 13,954.47. Based on its retreat, the value of stocks decreased by $215.8 billion.

To contact the reporter on this story: Eric Martin in New York at emartin21@bloomberg.net.

Last Updated: May 23, 2008 16:52 EDT