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Stocks Fall on Weak Job Gains

U.S. retail stocks hold up relatively well with just modest declines.

A weak reading of the U.S. job market in June pressured stocks today, although retailers fared better than most.

 

The S&P Retail Index was down just 0.1 percent, or 0.58 points, to 618.27 as trading settled. The Dow Jones Industrial Average fell 1 percent, or 124.20 points, to 12,772.47.

 

The retail decliners included Christopher & Banks Corp., which fell 8.1 percent to $1.37 after rejecting a takeover offer from Aria Partners; Zale Corp., 6.5 percent to $2.72; Fifth & Pacific Cos. Inc., 5.3 percent to $10.57; Guess Inc., 4.9 percent to $29.25; The Jones Group Inc., 4.1 percent to $10.39, and Coach Inc., 3.6 percent to $57.55.

 

The Labor Department said the U.S. added just 80,000 jobs last month — less than the 90,000 gain economists expected. That makes three straight months with job growth below 100,000. On a broader scale, International Monetary Fund chief Christine Lagarde said in Tokyo that the next global growth forecast from the organization would be less than the 3.5 percent it projected in April.

 

European markets lost ground, with Milan’s FTSE MIB falling 2.5 percent to 13,732.07, as Frankfurt’s DAX and Paris’ CAC 40 both declined 1.9 percent, to 6,410.11 and to 3,168.79, respectively. The FTSE 100 in London fared the best, slipping just 0.5 percent to 5,662.63. The day’s biggest decliners included Burberry Group, down 3.7 percent to 12.89 pounds; Geox, 1.2 percent to 1.78 euros; Metro AG, 3.8 percent to 21.80 euros, and Tod’s, 3 percent to 76.20 euros.

 

Among the few stocks that gained ground were Brunello Cucinelli, up 1.2 percent to 11.38 euros, and Safilo Group, 0.1 percent to 4.44 euros.

 

The euro traded at $1.25 while the pound traded at $1.56.