Sept. 11 (Bloomberg) -- U.S. stocks fell for the first time in six days as concern the recent rally in equities outpaced the prospects for earnings overshadowed higher-than-estimated consumer confidence and profit at FedEx Corp. Gold surged to an 18-month high as the dollar slumped for a sixth day.

The 10-year Treasury note rose, capping a fifth week of gains, after the relative value of U.S. government debt helped fuel demand at auctions of $70 billion in bonds and notes the last three days. Crude oil fell more than $2 a barrel and copper retreated to a one-week low.

The Standard & Poor’s 500 Index lost 0.1 percent to 1,042.73 at 4:04 p.m. in New York to trim its advance over the past four days to 2.6 percent, its best weekly gain since July. The Dow Jones Industrial Average fell 22.07 points, or 0.2 percent, to 9,605.41. Five straight gains pushed both benchmarks to their highest closes since Oct. 6 yesterday.

“We’re going to get a recovery, but it’s not normal because of the magnitude of the pressure on the U.S. consumer,” said Michael Shinnick, a South Bend, Indiana-based money manager at Wasatch Advisors Inc., which oversees $5.5 billion. “We’re more positive on businesses where there’s demand independent of where we are in the macro cycle.”

54 Percent Rebound

The S&P 500 has rebounded 54 percent from a 12-year low on March 9 amid signs the recession is easing as companies from Johnson & Johnson to Goldman Sachs Group Inc. posted earnings that beat analysts’ estimates. The rally has pushed the valuation of the index to about 19 times the reported earnings of its companies, the highest level since 2004, according to weekly data compiled by Bloomberg.

The S&P 500 gained for a fifth straight day yesterday, its longest streak since November, as rising forecasts for oil demand boosted energy shares and jobless claims slid to the lowest level since July. The benchmark gauge has not climbed for sixth consecutive days since 2007.

The Shanghai Composite Index rallied 2.2 percent today after output at factories in China gained 12.3 percent from a year earlier, the most since August 2008, the statistics bureau said in Beijing today.

Gold futures for December delivery rose $9.60, or 1 percent, to $1,006.40 an ounce on the New York Mercantile Exchange’s Comex division, the first close above $1,000 since February. The advance brought this week’s gain to 1 percent. Gold has climbed for four straight weeks.

Dollar Slumps

The U.S. Dollar Index, a six-currency gauge of the greenback’s value, has dropped for six consecutive sessions, the longest slump since March, to an 11-month low. Before declining today, crude-oil prices, used by some investors as a gauge of future inflation, jumped 61 percent this year. Gold, which tends to gain when the dollar weakens, has climbed 14 percent in 2009. New York.

The dollar traded at $1.4596 per euro, compared with $1.4582 yesterday, after earlier sliding to $1.4634, the weakest level since Dec. 18. The U.S. currency fell 1.4 percent to 90.47 yen after touching 90.21, the lowest level since Feb. 12.

The yield on the benchmark 10-year note fell two basis points, or 0.02 percentage point, to 3.34 percent. The yield on the 30-year bond fell 10 basis points to 4.17 percent on the week after the $12 billion of the securities offered yesterday drew the strongest demand in more than two years.

Crude, Copper Slump

Crude oil fell after not breaking through $72.90, this month’s high, a signal for traders to sell futures. Prices in New York dropped for the first time in five sessions as U.S. stock markets retreated. Futures also declined because of rising U.S. fuel stockpiles. The contract climbed for the week as a lower dollar bolstered the appeal of commodities to investors as an inflation hedge.

Crude oil for October delivery lost $2.65, or 3.7 percent, to $69.29 a barrel, the biggest decline since Aug. 31. Prices climbed 1.9 percent for the week.

Copper prices fell to a one-week low after inventories in China, the world’s largest consumer of the metal, jumped to the highest level in two years. Copper futures for December delivery fell 3 cents, or 1 percent, to $2.8465 a pound on the Comex division of the New York Mercantile Exchange. Earlier, the price touched $2.825, the lowest level for a most-active contract since Sept. 3. The price dropped 0.7 percent this week.

Soybeans fell to a seven-week low after the U.S. government said farmers will harvest a record crop this year. Rice futures fell the most allowed by the Chicago Board of Trade after the U.S. Department of Agriculture forecast a surge in domestic inventories.

Sugar futures fell on speculation that major consuming countries will slow purchases after prices surged. Coffee jumped to the highest in three weeks.

To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net.

Last Updated: September 11, 2009 17:33 EDT