The stock market opened lower as America looks back on the 14th anniversary of the September 11 attacks.
The S&P 500 slid six points to 2,035, the Dow Jones Industrial Average dropped 56 points to trade near 16,274 and the Nasdaq declined 22 points to 4,773.
Asian markets ended modestly lower as a data dump from China is expected to hit on Sunday night. Citigroup chief economist Willem Buiter estimates there is a 55 percent chance of a made-in-China global recession and argues that Chinese growth will fall below 4 percent.
In Europe, all of the major indices were lower across the board. German CPI was flat as energy costs are beginning to make an impact and Italian industrial output grew at its fastest pace in July.
Zumiez was pummeled after the close of Thursday’s market when the surf-inspired retailer delivered an earnings miss and guided down for the next quarter. Zumiez is battling sluggish mall traffic and a strong dollar that has chased away shoppers from its tourist-based stores. Zumiez also blamed the later Labor Day holiday for affecting its August sales. Ultimately, Zumiez admitted it just didn’t have the fashions that would bring shoppers in to spend. The stock fell almost 17 percent to trade at $17.99.
Cherokee also fell sharply, with the stock losing 32 percent of its value in early trading to $16.39 after Target said it would not renew its license for the Cherokee brand. The 20-year relationship will end in January 2017. Wunderlich cut its price target for Cherokee to $26 from $33 and B. Riley cut its target price to $27 from $34. Cherokee still has a deal with Kohl’s and could see new freedom to replace Target with another big company; however, royalty revenues from Target accounted for 43 percent of Cherokee’s consolidated revenue in 2015.
Lululemon took a beating on Thursday on its weaker-than-expected guidance, but on Friday things seemed to be turning around. RW Baird upgraded the stock to outperform based on the “compelling” valuation, which is analyst speak for the stock is really cheap now. Having said that, Lululemon stock is still up 18 percent for the past year. Lululemon was rising by 1.1 percent to $53.17 in early trading.
In U.S. economic news, August producer prices were unchanged and core producer prices increased 0.3 percent, higher than the consensus expectations of 0.1 percent.
One of the bigger stories this morning is that crude oil is sharply lower, dropping over 2 percent to $44.92, with Goldman Sachs warning that crude could drop to $20 a barrel due to massive oversupply. Goldman does expect that the market will make adjustments to production, but so far that hasn’t happened.