Retail stocks went into a steep dive Monday even before the House of Representatives voted down the revised fiscal bailout plan, 228 to 205.
The Dow Jones Industrial Average fell more than 700 points at one point prior to the completion of the vote but rebounded slightly afterward. After lawmakers rejected the plan, the Dow sat at 10,597.62, down 545.51, or
4.9 percent, as the final 70 minutes of the trading day approached, while the Standard & Poor’s Retail Index was at 353.57, down 22.10, or 5.9 percent, at 2:30 p.m.
Stocks began the day sharply lower following news of the sale of Wachovia Corp.’s banking operations to Citigroup, and worldwide markets were lower and jittery in anticipation of the bailout vote, even as central banks propped up credit markets.
While declines were nearly universal, among the largest retail decliners as the final hour of trading approached were Dillard¹s (11.8 percent), Macy’s (10.9 percent), Dillard’s (10.1 percent) and Saks (9.9 percent).
In Tokyo, where markets open first and investors often set the tone for traders in Europe and then the U.S., the Nikkei 225 fell 1.3 percent, or 149.55 points, to 11,743.61.
For complete coverage, see Tuesday’s issue of WWD.