Retail stocks lost ground today on Wall Street, where worries about Cyprus’ financial troubles hurt investor sentiment.
The S&P 500 Retailing Industry Group fell 0.7 percent, or 5.07 points, to 713.18, as the Dow Jones Industrial Average declined 0.6 percent, or 90.24 points, to 14,421.49.
Among the decliners were Guess Inc., down 7.2 percent to $25.01 after the company’s first-quarter financial forecasts disappointed investors; True Religion Apparel Inc., fell 4.9 percent to $26.46, and J.C. Penney Co. Inc., declined 4 percent to $15.53.
The market turned its attention to Europe and the latest leg of its financial troubles.
Cyprus is exploring ways to finance its potential bailout from the European Union and the International Monetary Fund. The latest plan is to launch a state investment fund that may include a revised bank levy — a controversial component of an earlier bailout plan that failed.
The CAC 40 in Paris sank 1.4 percent to 3,774.85, followed by the DAX in Frankfurt, which was down 0.9 percent to 7,932.51. The FTSE 100 in London fell 0.7 percent to 6,388.55 while the FTSE MIB in Milan was down 0.5 percent to 15,935.99.
The pound traded at $1.51 against the dollar, while the euro traded at $1.29 and the Swiss franc traded at $1.06.
Retail and luxury stocks put on a mixed show, with the day’s biggest gainers including British retailer Next plc, which advanced 4 percent to 43.14 pounds on the back of a 10.7 percent spike in profits for the year ending January 31, 2013.
Mulberry Group was up 1.7 percent to 12.35 pounds while Metro AG advanced 1.4 percent to 22.69 euros.
Among the stocks that lost the most ground were Burberry Group, down 2.7 percent to 13.87 pounds; Compagnie Financière Richemont, 4.5 percent to 73 Swiss francs; PPR SA, 174.05 euros, and Hugo Boss, 1.9 percent to 84.31 euros.