Stock markets retreated today as Wal-Mart’s Stores Inc.’s third-quarter sales fell short of expectations, weekly jobless claims spiked and Europe sunk into recession.
The S&P 500 Retailing Industry Group was just barely ahead in the final minutes of trading, up 0.20 points to 635.10, and the Dow Jones Industrial Average was off 0.2 percent, or 20.86 points, to 12,550.09.
Wal-Mart, a component of the Dow but not the retail index, said its third-quarter revenues came in at $113.93 billion — below the $114.95 billion analysts estimated. That helped push the stock down 3.5 percent to $68.80 and, given Wal-Mart’s size, weighed on the market overall.
Other retail decliners included The Bon-Ton Stores Inc., which posted narrower third-quarter losses, but saw its stock slip 5.9 percent to $10.29; Urban Outfitters Inc., down 3.8 percent to $34.82, and American Eagle Outfitters, off 2.4 percent to $18.87.
Investors are still trying to gauge the lingering impact of Hurricane Sandy and the consumer reaction to Washington’s debate over the fiscal cliff, a potentially toxic combination of automatic tax increases and spending cuts.
Initial jobless claims jumped 78,000 last week to 439,000, well ahead of the 369,000 economists projected. Part of the increase was attributed to Sandy.
In European stock markets closed down as the euro zone officially slipped into recession. According to Eurostat, the euro zone returned to recession in the third quarter ended Sept. 30. The economy across 17 nations shrank 0.1 percent, after contracting 0.2 percent in the second quarter.
A recession is usually defined as two consecutive quarters of contraction.
The DAX in Frankfurt and London’s FTSE 100 suffered the day’s biggest losses, both dropping 0.8 percent to 7,043.42 and 5,677.75 respectively. The FTSE MIB in Milan dipped 0.6 percent to 15,162.82, while the CAC 40 in Paris edged down 0.5 percent to 3,382.40.
Retail and luxury stocks were mostly down, with the day’s biggest decliners including Hennes & Mauritz, which fell 3 percent to 213.10 Swedish krona following news that same-store sales in October decreased 5 percent; Mulberry Group, down 2.6 percent to 10.42 pounds; Marks & Spencer Group, 2.1 percent to 37.06 pounds; Compagnie Financière Richemont, 1.9 percent to 64.40 Swiss francs; and PPR, 1.5 percent to 133.50 euros.
The few stocks that gained ground included Asos, up 2.3 percent to 22.32 pounds; French Connection, 4.3 percent to 0.25 pounds, and Luxottica, 0.3 percent to 29.70 euros.
The euro traded at $1.27 versus the dollar, the pound was valued at $1.59, the Swedish krona was worth 15 cents and the Swiss franc traded at $1.06.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)