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Weak JC Penney, Nordstrom results weigh on US stocks

New York - Weak earnings from department stores Nordstrom and JC Penney offset a better-than-expected US retail sales report on Friday, leading US stocks mostly lower in early trade.

Nordstrom reported a 64% drop in first-quarter earnings to $46m, while Penney saw comparable sales fall 0.4% during the period. Nordstrom shares plunged 15.1%, while Penney lost 4.3%, sustaining a trend of weak retail earnings resulting in investor punishment.

About 30 minutes into trade, the Dow Jones Industrial Average was down 0.2% at 17 688.38.

The broad-based S&P 500 lost 0.1% at 2 061.19, while the tech-rich Nasdaq Composite Index rose 0.1% to 4 739.78.

Other retailers also dragged on the market, including Walmart, down 2.5%, and Target, down 1.8%.

Yet US government data showed retail sales climbing a better-than-expected 1.3% in April, boosted by higher auto sales.

Apple rose 0.5% after announcing a $1bn investment in Chinese taxi app Didi Chuxing, a rival to Uber, in a move to boost its understanding of the massive Chinese consumer market.

Worries about Apple's place in China have weighed on the stock over the last couple of weeks.

Chipmaker Nvidia surged 13.1% after reporting a 46.3% rise in first-quarter earnings to $196m, as it pointed to strong growth in all businesses, including gaming, professional and auto.

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