Dow dropped 140, decliners over advancers 3-2 and NAZ was down a more mild 8 as disappointing retail sales dragged stocks down. US retail sales slipped only 0.1%, but it was the first decline since Feb & expectations were for flat sales. Autos had their worst month in 16 years, but excluding auto sales produced a meager gain of only 0.4% (again below expectations). Much of these gains came from gas sales. Customers are being squeezed & retailers are feeling it. Ahead of the weekly inventory report, oil is up pennies in the 113s.
Banks are taking another drubbing after yesterday's ugly news:
S&P 500 FINANCIALS INDEX
Value...277.30_ Change.. (6.71)_ % Change.. (2.4%)
Macy's (M) reported slightly lower earnings in Q2, stock down 29¢. More importantly, they reduced their 2008 guidance to $1.70-1.85, below forecasts of $1.86. Deere (DE) reported good but not good enough earnings, down 6. The commercial & consumer group suffered a 1% decrease in sales. Their outlook, like many others, remains cautious with worries about the economic slump in the US & higher prices for their costs.
Markets are feeling the effects of dreary economic news.
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