Dow and S&P close negative amid concerns of slowdown in retail sector
Published May 12, 2017 04:13PM ET
Updated May 12, 2017 04:23PM ET
US stocks closed lower on Friday
Investing.com – U.S. stocks closed mostly lower on Friday, as investors fled retail stocks for a second straight day amid fears of a slowdown in the retail sector while weaker than expected economic data weighed on upside momentum.
Retailers led the decline, in the major U.S. indexes, as shares of JC Penney Company Inc Holding (NYSE:JCP) dropped 14%, after the company beat earnings expectations but fell short of comparable-store sales estimates.
The slump in shares of JC Penny, came a day after department store chain, Macy’s Inc (NYSE:M) dropped 17%, after reporting earnings that missed estimates on both the top and bottom line.
Meanwhile, weaker than expected economic data dampened expectations of a rebound in U.S. economic growth for the second quarter, as both inflation and core retail sales data fell short of expectations.
Core Retail Sales, an important indicator used to gauge the strength of the U.S. economy, increased by 0.3% last month, compared to expectations for a 0.5% rise.
Elsewhere, the Labor Department said consumer prices rose 0.2% after a 0.3% drop in March, which was the biggest fall in more than two years.
On the political front, investors parsed through a tweet from Donald Trump, after he warned recently dismissed FBI chief James Comey, against leaking information to the press.
The Dow Jones Industrial Average closed at 20,896.61, down 0.11%. The S&P 500 lost 0.15% while the Nasdaq Composite closed at 6121.23, up 0.09%
The ‘Bulls and Bears’ on Wall Street
The top Dow gainers included; Apple Inc (NASDAQ:AAPL) up 1.4%, McDonald’s Corporation (NYSE:MCD) up 0.8%, while Visa Inc (NYSE:V) added 0.7%.
General Electric Company (NYSE:GE) down 2.1%, Merck & Company Inc (NYSE:MRK) down 1.3% and United States Diesel-Heating Oil (NYSE:UHN) down 0.9%, were among the worst Dow performers of the session.
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Written By: Investing.com
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