U.S. equities slipped following worse-than-expected sales declines at Macy’s and Kohl’s which fueled a selloff in shares of department stores and sparked concerns that consumers are not spending enough to stimulate economic expansion
The Dow Jones industrial average dropped 0.11 percent to 20,919.42, as Microsoft lagged behind while Apple was the best performer. The S&P 500 fell 0.22 percent at 2,399.44, with consumer discretionary leading eight sectors down while consumer staples gained. The Nasdaq Composite slipped 0.22 percent at 6,115.96.
Macy’s disappointing quarterly performance drove its shares plunging 17 percent, weighing heavily on the consumer discretionary sector, which tumbled 0.59 percent. Kohl’s shed 7.86 percent after it posted a decline in quarterly sales, while shares of Nordstrom and J.C. Penney Co Inc both slipped over seven percent.
Financials dropped 0.53 percent, pulled down by the 1.79 percent decline in Wells Fargo.
Social media firm Snap Inc also posted quarterly results, marking the first time doing so since going public. Snapchat’s parent firm posted sales of $150 million. The weak results sent the stock tumbling 21.5 percent
Shares of Straight Path also plunged 20.41 percent after it announced that it has agreed to be taken over by Verizon in a $3.1 billion deal.
Bucking the trend was Merck which climbed 0.77 percent after the U.S. FDA cleared its lung cancer combination.
The material has been provided by InstaForex Company – www.instaforex.com
May 12, 2017 at 07:04AM
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