Most stocks fell Friday, pulling the Standard & Poor's 500 Index down from a 17-month high, as a drop in consumer confidence overshadowed an unexpected increase in retail sales Citigroup Inc. and Bank of America Corp. fell more than 1.5 percent and S&P 500 financial shares ended their longest streak of gains since at least 1989. Pfizer Inc. slid 1.2 percent after its drug failed to halt the progression of advanced breast tumors. Caterpillar Inc. helped lead the Dow Jones Industrial Average higher on signs of growing demand for construction machinery in China. About 10 stocks declined for every nine that rose on the New York Stock Exchange and Nasdaq Stock Market. The S&P 500 fell less than 0.1 percent to 1,149.99 at 4:08 p.m. in New York, erasing an early gain of 0.3 percent after a decrease in the Reuters/ University of Michigan preliminary consumer sentiment index signaled continuing concern over the job market. The Dow rose 12.85 points, or 0.1 percent, to 10,624.69. 'It looks like confidence is beginning to wane,' said Michael Mullaney, who manages $9 billion at Fiduciary Trust Co. in Boston. 'Confidence is going to suffer until we get real improvement on the jobs front. In addition, the stock market is a little bit extended right now. A minor pullback wouldn't be surprising.' Stocks rose for a third day Thursday, sending the S&P 500 Index to the highest level since October 2008, as Citigroup Inc. led a rally in bank shares. The S&P 500 gained 1 percent this week and the Dow climbed 0.6 percent. The S&P 500 closed at a 15-month high of 1,150.23 on Jan. 19, and then plunged 8.1 percent through Feb. 8 on concern that European nations including Greece will fail to pay back debt and speculation that the Fed will need to rein in emergency stimulus measures as the economy improves. The index has since erased that loss to extend its rebound since March 9, 2009, to 70 percent. 'The glass may be half full, but people are not quite certain they can hold on to the glass,' said Jason Pride, director of investment strategy at Glenmede in Philadelphia, which manages $18 billion. 'The market is jittery. Every little piece of news will make people nervous or happy. On top of that, the excess debt situation throughout the developed markets is a big headwind. That will keep economic growth at a subpar level.' Financial shares in the S&P 500 retreated for the first time in 11 sessions, losing 0.4 percent as a group. Citigroup Inc. fell for the first time in nine days after Oppenheimer & Co. said the stock is fairly valued and under a 'cloud' as long as the federal government remains a major shareholder. Citigroup dropped 5 percent to $3.97 after Thursday rising to the highest since November. Charles Schwab Corp. sank 3.5 percent to $18.43 after saying it expects first- quarter earnings to be as much as 4 cents a share lower than its fourth-quarter results. Fourth-quarter net income was 14 cents. The average estimate of analysts surveyed by Bloomberg was for a first-quarter profit of 15 cents a share. Bank of America had the biggest decline in the Dow, dropping 1.6 percent to $16.85. Health-care stocks dropped 0.4 percent collectively. Pfizer retreated 1.2 percent to $17.08. The world's largest drugmaker said the cancer drug Sutent failed to halt the progression of advanced breast tumors in two studies. The company also stopped a trial of an experimental medicine to treat lung malignancy. United Technologies Corp. slipped 0.7 percent to $71.53. The maker of Pratt & Whitney jet engines said it expects 2010 earnings per share of $4.40 to $4.65. The average estimate of analysts surveyed by Bloomberg was $4.64 a share. Sears Holdings Corp. and Macy's Inc, the largest U.S. department-store companies, gained at least 1.7 percent. Makers of construction machinery rallied after Komatsu Ltd. of Japan, the world's second-largest seller of large dump trucks and excavators, said it expects sales in China to increase 40 percent to 50 percent in the year starting April 1. Caterpillar Inc., the world's largest maker of bulldozers, gained 2.5 percent to $60.36, the second-biggest gain in the Dow. Paccar Inc., a maker of Kenworth, Peterbilt and DAF trucks, rose 3.9 percent to $41.35, the highest since September 2008. Monsanto Co. rose 1 percent to $72.35. The company, facing antitrust probes into its genetically modified seeds, may benefit from previous court rulings in which intellectual property rights trumped competition concerns, according to antitrust lawyers. With assistance from Lynn Thomasson, Elizabeth Stanton and Craig Trudell in New York and Sarah Jones in London. 