Investors continued to panic this morning, selling shares with abandonand then turning on a dime to push stocks up as credit and economic fears gripthe now-schizophrenic financial markets.
The Dow Jones Industrial Averagefell by 8.1 percent, or below 7,900, in early trading before rebounding brieflyinto positive territory and falling again.
President Bush stepped in andtried to sooth frayed nerves in an address from the White House, but stocksremained down. As of 10:45 a.m., the Dow was down 3.7 percent, or more than 313points, to 8,265.45.
“We have witnessed a startling drop in the stockmarket, much of it driven by uncertainty and fear,” Bush said. “The UnitedStates government is acting. We will continue to act to resolve this crisis andrestore stability to our markets.”
Bush announced no new programs, but theTreasury Department is considering injecting money from the $700 billion bailoutapproved by Congress directly into banks.
By mid-morning, the Standard &Poor’s Retail Index was off 2.4 percent, or 6.65 points, to 270.23. The indexfell 7.9 percent Thursday, it’s largest one-day drop ever.
The top declinersamong broadline stores this morning included Dillard’s, down 7.8 percent to$7.84; Macy’s, which lowered second-half projections, 6.6 percent to $10.70;J.C. Penney, 5.4 percent to $22.15, and Wal-Mart, 4.4 percent to $49.11.
Atthe specialty stores, Charming Shoppes, which reduced profit projections, sank22.3 percent to $2.84. Other decliners included American Eagle, 6.8 percent to$9.91; AnnTaylor Stores, 6.7 percent to $15.44; Pacific Sunwear, 6 percent to$3.93, and Wet Seal, 4.9 percent to $2.91.
Retailers are still trying togauge how the roiling financial waters will impact consumers, who are clutchingtheir pocketbooks closer than ever if the wave of weak September sales reportsthis week are any indication.
Macy’s Inc. today slashed its 2008 earningsguidance to $1.35 to $1.50 a diluted share, excluding one-time consolidationcosts and impairment charges. The retailer, which operates the Macy’s andBloomingdale’s chains, had in somewhat better days penciled in profits of $1.70to $1.85.
The firm said same-store sales fell 5.8 percent for August andSeptember combined and could be down 3 percent to 6 percent for the fallseason.
Macy’s said it continued to be financially healthy, with $740 millionin cash and cash equivalents on hand and a $2 billion bank creditagreement.
"We have a strong and experienced organization that is committedto maximizing performance through the upcoming holiday season, and to continueto implement the My Macy's localization initiative that we believe will positionus well in 2009 and beyond," Terry Lundgren, chairman, president and chiefexecutive officer of Macy's, said.
Charming Shoppes Inc. also acknowledgedthe squeeze today.
The plus-sized specialty retailer cut its third-quarterestimate for continuing operations to a loss of 35 cents to 37 cents a dilutedshare, down from previous projections for a 9 cent to 11 cent deficit.
InTokyo, worried traders drove the Nikkei 225 down 9.6 percent, or 881.06 points,to 8,276.43—the third worst decline in the index’s history. By mid-afternoonlocal time in London, the FTSE 100 was down more than 5 percent.
@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 (📷: Dominique Maître)
@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)