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Retail Stocks Keep Falling

Sector posts 0.5 percent decline after sharper drop Thursday.

Retail stocks continued to fall today after cuts to back-half outlooks from Wal-Mart Stores Inc. and others spooked markets Thursday.

 

The S&P 500 Retailing Industry Group, dipped 0.5 percent, or 4.14 points, to 812.36, as the Dow Jones Industrial Average, declined a lesser 0.2 percent, or 30.72 points, to 15,081.47.

Retail stocks fell 1.9 percent Thursday as the Dow retreated 1.5 percent, losing 225 points.

Retail is still up strongly for the year, ahead 24.4 percent versus the Dow’s 15.1 percent gain, and investors are starting to get antsy, looking for what might spark a market correction.

Leading the decliners was Jos. A. Bank Clothiers Inc., off 7 percent to $41 after the company said second-quarter earnings per diluted share would range from 49 cents to 53 cents, instead of the 68 cents analysts projected.

Also losing ground were Nordstrom Inc., down 4.9 percent to $56.43 after cutting estimates for the full year Thursday, and J.C. Penney Co. Inc., which fell 3.1 percent to $13.40 after the company inked a deal that enables top shareholder William Ackman to unwind his stake if he chooses.

Shares of Wal-Mart fell 0.4 percent to $74.11.

In Europe, markets closed the week on an up note. Milan’s FTSE MIB led the way, rising 1.2 percent to 17,677.77. London’s FTSE 100 gained 0.3 percent to 6,499.99, the CAC 40 in Paris rose 0.8 percent to 4,123.89 and Frankfurt’s DAX climbed 0.2 percent to 8,391.94.

The pound traded at $1.51 against the dollar, while the euro was worth $1.31.

Retail and luxury stocks were mostly down. The decliners included Tod’s, down 2.4 percent to 141.10 euros; Hermès, 1.9 percent to 255.95 euros; and Inditex, which lost 1.1 percent to 102.75 euros, as one of its founders — Rosalia Mera — died in Spain.

Among the stocks gaining ground were Mulberry, up 4.6 percent to 10 pounds; Unilever, 1 percent to 29.93 euros, and LVHM Moët Hennessy Louis Vuitton, 0.6 percent to 140.90 euros.