KR, Best Buy lead the way down

Sept. 13 (Bloomberg) -- U.S. stocks dropped as consumers and investors became increasingly pessimistic about the economy in the wake of Hurricane Katrina and record oil prices.

Higher fuel prices ``will directly affect consumers' pocketbooks and impact consumer psychology,'' said Lawrence Creatura, who helps manage $2.6 billion at Clover Capital Management in Rochester, New York. ``You're going to see a number of retail'' companies cut earnings projections, he said.

Shares of Best Buy Co., the biggest U.S. electronics retailer, and Knight Ridder Inc., the No. 4 U.S. newspaper publisher, led the decline after the companies issued disappointing profit forecasts.

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