US stocks fell on Friday, as shares of large multinationals sensitive to the dollar fell in sync with the euro on the eurozone's debt problems and retailers lost ground after a weak profit outlook from Gap. Gap Inc plummeted 16.5 percent to $19.44 after slashing its full-year profit outlook late Thursday, saying higher price tags will not be enough to offset rising cotton costs.
Caterpillar Inc shed 0.4 percent to $104.90. The S&P Cap Goods sector index lost 0.7 percent. The Dow Jones industrial average dropped 40.45 points, or 0.32 percent, to 12,564.87. The Standard & Poor's 500 Index shed 5.13 points, or 0.38 percent, to 1,338.47. The Nasdaq Composite Index fell 9.82 points, or 0.35 percent, to 2,813.49.