NEW YORK – Disappointing forecasts from retailers and concern about the government’s financial overhaul package pounded stocks Thursday.

The Dow Jones industrial average lost 146 points after edging higher Wednesday. Broader indexes dropped for a fourth straight day.

Downbeat forecasts from retailers raised concerns that high unemployment and weak consumer spending would stall an economic rebound.

Nike Inc. dropped 4 percent after saying increased costs could hurt earnings. Bed Bath & Beyond fell 5.6 percent after the home goods retailer’s second-quarter earnings forecast missed expectations.

Meanwhile, financial stocks fell after Congress continued working on a bill to overhaul regulation of the industry. Democratic leaders hoped to reconcile the House and Senate bills so President Obama can have a deal in place by the time he meets with the leaders of the Group of 20 nations this weekend in Toronto.

Large banks were lobbying to strike a proposal that would make the industry cover costs to dismantle the mortgage giants Fannie Mae and Freddie Mac. Bank of America Corp. dropped 2.7 percent and JPMorgan Chase & Co. lost 2.2 percent.

The Dow fell 145.64, or 1.4 percent, to 10,152.80. The Standard & Poor’s 500 index fell 18.35, or 1.7 percent, to 1,073.69. It was the first four-day drop for the S&P 500 index since early May. The Nasdaq composite index fell 36.81, 1.6 percent, to 2,217.42.