Stock prices fell sharply on Friday, the worst day of trading this year, as worries over the strength of the American consumer eclipsed a round of mostly positive earnings reports. On its surface, the news that JPMorgan Chase had doubled its 2009 profits from 2008 might seem reason for elation among investors. But on Friday, Wall Street traders took one look at the results and began to sell. By the end of trading, the three major indexes were down about 1 percent, with the Dow Jones industrial average falling nearly 101 points. The dollar strengthened, and bond yields fell. Traders saw promise and peril in JPMorgan Chase's financial report. The bank said it earned $11.7 billion last year and that its profit quadrupled in the fourth quarter, beating expectations. But the firm's chief executive noted that losses on consumer loans remained high and would remain an issue in 2010. 'It does continue to bring up old fears,' said James W. Paulsen, chief investment strategist for Wells Capital Management. The Dow Jones industrial average declined 0.94 percent, or 100.90 points, to 10,609.65. Standard & Poor's 500-stock index fell 1.08 percent, or 12.43 points, to 1,136.03. The Nasdaq composite index dropped 1.24 percent, or 28.75 points, to 2,287.99. For the week, the Dow industrials slipped 0.1 percent, the S&P 500 index lost 0.8 percent and the Nasdaq fell 1.3 percent. All sectors posted losses, with shares of banks leading the retreat. JPMorgan Chase declined 2.26 percent, and Bank of America fell 3.33 percent. Many banks will report earnings next week. Two weeks into the new year, Wall Street finds itself searching for direction. Over the next few weeks, companies will continue to announce fourth-quarter earnings, and the results are expected to be mostly positive. Expectations this quarter, however, have shifted, and investors are looking for indications that businesses have moved beyond cost-cutting and have started to bring in revenue. After the market closed on Thursday, Intel reported a 28 percent increase in revenue and the largest gross profit margin in its history. Overnight, its shares climbed, but they closed down 3.17 percent on Friday. That seemingly irrational behavior, selling even as a company exceeds expectations, brought an adage to the minds of several investors: 'Buy the rumor, sell the news.' 'It is an interesting juxtaposition,' said Hank B. Smith, chief investment officer for Haverford Investments. 'These all beat expectations, but by the time all the news is disseminated, there's concern this may be the peak for profit margins for these companies.' Smith said he did not believe the worries were valid. But he said Wall Street's negative reaction to the cheery reports could indicate that investors were using the earnings season as a selling opportunity. 'It would be healthy for the market to consolidate and pull back,' Smith said. 'It's very normal to have a correction -- defined as 10 percent or more -- in a bull market.' After an energetic rebound in the stock market last year, equities are expected to rise modestly through 2010. The Dow is approaching a psychologically important milestone -- 11,000 points, a level not seen since before the financial crisis -- and the S&P 500-stock index is nearing 1,150 points. Economic data released on Friday provided little relief from investors' concerns over profits. A report said manufacturing activity fell slightly in December, and a barometer of consumer sentiment released by the University of Michigan rose slightly this month but fell short of expectations. Still, there were signs that the near-zero interest rates may remain in place for some time, a boon for stocks. A Labor Department report suggested inflation was largely in check, with consumer prices increasing just 0.1 percent in December. Interest rates were lower Friday. The Treasury's 10-year note rose 15/32, to 97 16/32, and the yield fell to 3.68 percent from 3. 4 percent late Thursday. U.S. markets are closed on Monday for Martin Luther King's Birthday. 