Retail woes, cheaper oil push US stocks lower | Fin24

Retail woes, cheaper oil push US stocks lower

Nov 12 2015 07:40


New York - Worries about US retail sales and sinking oil prices sent Wall Street shares lower on Wednesday.

A dismal third-quarter report by department store chain Macy's, which slashed its year-end forecast, spilled through the broad retailing industry.

Another fall in oil prices, on the back of a new report on brimming US stockpiles, meanwhile sent oil company shares dropping as well.

The Dow Jones Industrial Average finished down 55.99 points (0.32 percent) at 17,702.22.

The broad-based S&P 500 slipped 6.72 points (0.32 percent) to 2,075.00, while the tech-rich Nasdaq Composite lost 16.22 (0.32 percent) at 5,067.02.

Trade was lighter for the Veterans Day holiday -- which saw bond markets closed -- and analysts said investors remained cautious after a six-week winning streak.

"Reminiscent of trick-or-treaters who overindulged on Halloween candy, equity markets now appear to be digesting the price-recovery feast enjoyed in October," said Sam Stovall of C&P Capital IQ.

Macy's quarterly report appeared to overtake sentiment. Its shares plunged 14 percent after it reported quarterly revenues fell 5.2 percent and it cut its full-year earnings forecast by 10 percent. Macy's said both US and international shoppers had been cutting back spending.

Other retailers were hit in the wake: Target lost 3.0 percent, Wal-Mart 1.9 percent, and Nordstrom 3.7 percent.

Oil companies sank on a three percent fall in oil prices: ExxonMobil gave up 0.9 percent, Chevron 1.1 percent and ConocoPhillips 2.2 percent.

The long-awaited confirmation of Anheuser-Busch InBev's takeover of rival SABMiller, at a $121 billion price tag, pushed AB InBev shares up 2.8 percent and SABMiller's, traded in London, up 1.9 percent.

Meanwhile, Molson Coors Brewing, which will take full control of MillerCoors for $12 billion as part of the larger deal, surged 4.4 percent.

China's "Singles Day" annual online sales extravaganza broke new records, but that did not pay off for shareholders of two of the key e-tailing giants involved: Alibaba fell 1.9 percent and lost 1.1 percent.



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