Weak results at retailers drag US stocks lower - KSWO 7News | Breaking News, Weather and Sports

Weak results at retailers drag US stocks lower

By ALEX VEIGA

AP Business Writer Major U.S. stock indexes edged lower in morning trading Tuesday, weighed down by several major retailers that reported disappointing earnings. Staples, Dick's Sporting Goods and Urban Outfitters were among the biggest decliners, while Home Depot bucked the trend.

KEEPING SCORE: The Standard & Poor's 500 index fell two points, or 0.1 percent, to 1,882 as of 11:17 a.m. Eastern Time. The Dow Jones industrial average shed 24 points, or 0.2 percent, to 16,487. The Nasdaq composite slid 10 points, or 0.3 percent, to 4,115.

RETAIL SWOON: Staples' profit plunged 43 percent; Dick's Sporting Goods fell short and pared its outlook; Discount retailer TJX had weak sales and Urban Outfitters reported lower-than-expected earnings as sales at its namesake chain declined.

"Normally these sort of earnings reports wouldn't have that much of a significant impact on the market, but with volumes pretty low and not much other news, that's what's pushing us down," said Erik Davidson, deputy chief investment officer at Wells Fargo Private Bank.

FIRE SALE: Staples plunged $1.55, or 11.6 percent, to $11.84 in morning trading. Dick's Sporting Goods fell $8.59, or 16.2 percent, to $44.59. Urban Outfitters slid $2.41, or 6.7 percent, to $33.77. TJX shed $3.66, or 6.3 percent, to $54.74.

HOUSING BET: Home Depot's adjusted earnings and revenue came in short of Wall Street's expectations. However a key sales metric improved, despite a slow start to the spring home-selling season caused by bad weather. The home improvement retailer also raised its full-year earnings forecast. Home Depot's stock rose $2.27, or 3 percent, to $78.77.

MORE RETAIL TURMOIL: Target fired the president of its troubled Canadian operations and replaced him with company insider Mark Schindele, who has been senior vice president of merchandising operations in the U.S. Target fell 93 cents, or 1.6 percent, to $57.36.

HEFTY CHARGE: Medtronic agreed to pay more than $1 billion to settle long-standing patent litigation with fellow medical device maker Edwards Lifesciences over replacement heart valves. A one-time charge stemming from the settlement contributed to a 54 percent plunge in Medtronic's earnings in its fourth fiscal quarter. Medtronic's stock fell $1.44, or 2.4 percent, to $58.90.

SECTORS: Nine out of the 10 sectors in the S&P fell, led by industrial stocks. Energy companies rose.

OVER THERE: European markets mostly fell. France's CAC 40 fell 0.3 percent and Germany's DAX gave up 0.1 percent. Britain's FTSE 100 lost 0.2 percent. Thailand's stock market slumped and its currency wobbled after the military declared martial law in what it called an attempt to stabilize the country's precarious political situation.

OTHER MARKETS: Bond prices rose. The yield on the 10-year Treasury note edged down to 2.53 percent from 2.54 percent late Monday. Gold fell 20 cents to $1,293.60 an ounce. Crude oil fell to $102.10 a barrel.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • Local NewsNewsMore>>

  • S. Korea: Joint US drills suspended to aid talks with North

    S. Korea: Joint US drills suspended to aid talks with North

    Tuesday, June 19 2018 1:50 AM EDT2018-06-19 05:50:33 GMT
    Friday, June 22 2018 3:36 AM EDT2018-06-22 07:36:36 GMT
    (AP Photo/Ahn Young-joon). A photo showing U.S. President Donald Trump and North Korean leader Kim Jong Un is displayed as a member of People's Democratic Party stands to oppose military exercises between the United States and South Korea near the U.S....(AP Photo/Ahn Young-joon). A photo showing U.S. President Donald Trump and North Korean leader Kim Jong Un is displayed as a member of People's Democratic Party stands to oppose military exercises between the United States and South Korea near the U.S....

    South Korea says a joint military exercise scheduled with the U.S. has been suspended to support ongoing talks both countries have with North Korea.

    South Korea says a joint military exercise scheduled with the U.S. has been suspended to support ongoing talks both countries have with North Korea.

  • Trump administration pulls US out of UN human rights council

    Trump administration pulls US out of UN human rights council

    Tuesday, June 19 2018 12:00 PM EDT2018-06-19 16:00:59 GMT
    Friday, June 22 2018 3:36 AM EDT2018-06-22 07:36:21 GMT
    (Salvatore Di Nolfi/Keystone via AP, File). FILE - This is a Tuesday, Nov. 8, 2008 file photo, showing a general view of the Human Rights Room (Room XX) at the European headquarters of the United Nations in Geneva, Switzerland. Diplomats say the United...(Salvatore Di Nolfi/Keystone via AP, File). FILE - This is a Tuesday, Nov. 8, 2008 file photo, showing a general view of the Human Rights Room (Room XX) at the European headquarters of the United Nations in Geneva, Switzerland. Diplomats say the United...
    The Trump administration is poised to announce its departure from the United Nations' main human rights body in its latest withdrawal from an international institution.
    The Trump administration is poised to announce its departure from the United Nations' main human rights body in its latest withdrawal from an international institution.
  • Trump raises risk of economically harmful US-China trade war

    Trump raises risk of economically harmful US-China trade war

    Tuesday, June 19 2018 12:20 AM EDT2018-06-19 04:20:31 GMT
    Friday, June 22 2018 3:35 AM EDT2018-06-22 07:35:41 GMT
    President Donald Trump gestures as he signs a "Space Policy Directive" during a meeting of the National Space Council in the East Room of the White House, Monday, June 18, 2018, in Washington, as Vice President Mike Pence watches.  AP Photo/Susan Walsh)President Donald Trump gestures as he signs a "Space Policy Directive" during a meeting of the National Space Council in the East Room of the White House, Monday, June 18, 2018, in Washington, as Vice President Mike Pence watches. AP Photo/Susan Walsh)

    A new 10 percent tariff on $200 billion in Chinese imports is being threatened by Trump in the latest move toward what could become a trade war.

    A new 10 percent tariff on $200 billion in Chinese imports is being threatened by Trump in the latest move toward what could become a trade war.

Powered by Frankly