Business and Finance

Banking giants and a global search engine’s disappointing second-quarter earnings sent stocks tumbling Friday, ending a seven-day rally.

All three major stock indexes dropped at least 2.5 percent, with the Dow Jones industrial average falling 261 points to 10,097. Four of every five stocks lost, including large declines for three Sacramento-area stocks.

Shares of The McClatchy Co. (NYSE) — publisher of The Sacramento Bee and 29 other daily newspapers — dropped 32 cents, or 8.5 percent, to $3.44. The company’s stock has dropped 27 percent during the past month. The Sacramento-based company, which endured a disappointing second-quarter report by media giant Gannett Co. Inc. (NYSE: GCI), will release its earnings July 29.

Shares of SureWest Communications (Nasdaq: SURW) also dropped 32 cents — or 5.1 percent — to $5.99. The Roseville telecommunications company also will announce earnings July 29. And shares of GenCorp Inc no faxing 1 hour payday loans. (NYSE: GY) of Rancho Cordova fell 24 cents — or 4.6 percent — to $5.04.

Bank of America (NYSE: BAC) and Citigroup’s (NYSE: C) second-quarter performances disappointed investors, with both companies’ stock falling more than 5 percent. And Google (Nasdaq: GOOG) stock dropped 7 percent, after the search engine giant’s second-quarter earnings failed to find analyst estimates.

But the biggest concern was possibly a University of Michigan and Reuters twice-monthly consumer sentiment survey that fell to 66.5 in early July, from a previous 76. Analysts had expected much stronger showing, according to media reports.

The Nasdaq Composite Index lost 70.03 points, or 3.1 percent, while the Standard & Poor’s 500 index dropped 31.60 points, or 2.9 percent.

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