Retail disappointments, energy decline hit Wall Street

By Caroline Valetkevitch NEW YORK (Reuters) - U.S. stocks extended their recent selloff on Tuesday, with the S&P 500 hitting a three-week low, as energy shares dropped with oil prices and retailers including Target and Kohl's sank after weak earnings and forecasts. Target Corp shares slumped 9.5 percent after third-quarter profit missed analysts' estimates

Reuters November 21, 2018 02:05:17 IST
Retail disappointments, energy decline hit Wall Street

Retail disappointments energy decline hit Wall Street

By Caroline Valetkevitch

NEW YORK (Reuters) - U.S. stocks extended their recent selloff on Tuesday, with the S&P 500 hitting a three-week low, as energy shares dropped with oil prices and retailers including Target and Kohl's sank after weak earnings and forecasts.

Target Corp shares slumped 9.5 percent after third-quarter profit missed analysts' estimates. The company's investments in its online business, higher wages and price cuts hurt margins.

Department store operator Kohl's Corp shed 7.8 percent after its full-year profit forecast fell below expectations.

Warnings from retailers added to caution for investors, already on edge over recent sharp losses in technology shares, a slowdown in global growth, peaking corporate earnings and rising interest rates.

"Despite what has been a pretty good earnings season, people are looking ahead to next year and are worried about a slowdown," said Mark Kepner, equity trader at Themis Trading in Chatham, New Jersey.

"It's sell first, ask questions later at this point."

The S&P 500 and Dow slipped into negative territory for the year, and the Nasdaq fell to its lowest level in more than seven months.

The S&P energy index <.SPNY> tumbled about 3 percent and led sector losses as U.S. oil prices ended the day down 6.6 percent amid concerns about rising global supplies. The S&P 500 retail index <.SPXRT> lost 2.3 percent, on track for its eighth straight session of losses.

The Dow Jones Industrial Average <.DJI> fell 513.95 points, or 2.05 percent, to 24,503.49, the S&P 500 <.SPX> lost 46.72 points, or 1.74 percent, to 2,644.01 and the Nasdaq Composite <.IXIC> dropped 119.76 points, or 1.7 percent, to 6,908.72.

Among other retailers, home improvement chain Lowe's Cos Inc fell 5.3 percent after it unveiled further plans of restructuring in the face of worse-than-expected sales numbers.

TJX Cos Inc slipped 3.8 percent after the discount retailer's holiday-quarter earnings forecast came in largely below estimates. Smaller rival Ross Stores fell 8.1 percent after it forecast fourth-quarter same store sales below analysts' expectations.

Apple Inc shares fell 4.5 percent as concerns lingered over slowing demand for iPhones. The stock, which has led the market through much of its long bull run, is at its lowest level since early May.

Signs of cooling demand for iPhones have wide-ranging implications for technology and internet companies.

Should Apple's loss hold through the day, its shares would have lost more than 20 percent of their value, or around $250 billion, since its Oct. 3 record closing high.

Goldman Sachs trimmed its price target on Apple for the second time in just over a week, saying the balance of price and features in the new iPhone XR may not have been well-received by users outside of the United States.

Declining issues outnumbered advancing ones on the NYSE by a 5.85-to-1 ratio; on Nasdaq, a 3.10-to-1 ratio favoured decliners.

The S&P 500 posted 20 new 52-week highs and 41 new lows; the Nasdaq Composite recorded 10 new highs and 263 new lows.

(Additional reporting by April Joyner, Medha Singh and Lewis Krauskopf; Editing by Anil D'Silva and Rosalba O'Brien)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.