Markets Slip Despite Deal for Cyprus

U.S. retail stocks post modest decline.

U.S. retail stocks slipped modestly as Wall Street took a step back today and European markets fell as the euphoria following a deal for Cyprus faded quickly.

The S&P 500 Retailing Industry Group dipped 0.1 percent, or 0.37 points, to 720.73 and the Dow Jones Industrial Average retreated 0.4 percent, or 64.28 points, to 14,447.75.

Among the U.S. fashion stocks losing ground were Zumiez Inc., down 3.5 percent to $23.75; Zale Corp., 3.5 percent to $4.15; Coldwater Creek Inc., 3.4 percent to $3.12, and J.C. Penney Co. Inc., 1.6         percent to $15.18.

In Europe, markets started off strongly on word that Cyprus had reached a bailout deal, but were in retreat at the close of trading.

Cyprus and the European Union agreed to a 10 billion euro, or $12.99 billion, bailout deal that will keep it in the euro currency bloc and allow its banking system to survive—albeit in a more abbreviated form.

The outlook for Cyprus remains grim, with potentially more austerity cuts, recession and unemployment on the horizon.

The FTSE MIB in Milan lost the most ground, sinking 2.5 percent to 15,644.36, followed by the CAC 40 in Paris, which sank 1.1 percent to 3,727.98. The DAX in Frankfurt was down 0.5 percent to 7,870.90,  while the FTSE 100 in London fell 0.2 percent to 6,378.38.

The euro traded at $1.30 against the dollar while the pound fetched $1.52.

The decliners for the day included Mulberry Group, which fell 2.1 percent to 10.03 pounds, the stock still smarting from a profit warning Friday, the second in six months. Carrefour was down 2.6 percent to 21.27 euros.

Among the few stocks that gained ground were Asos.com, up 2.2 percent to 33.65 pounds, and L’Oreal, 1.4 percent to 121.95 euros.