MarketPulse: Retailers a Pocket of Strength in Today's Carnage
Published Oct 10, 2018 02:22PM ET
Retailers were a bright spot in a day of intense selling.
Investing.com - U.S.-focused retailers offered investors refuge in the midst of a rout in the market, while trade-sensitive industrials continued to sell off heading into the close.
With stock markets in freefall on concerns about global growth and rising rates, investors sought out retailers that generate the bulk of their revenues from the United States, to weather the turbulent period.
Dollar Tree (NASDAQ:DLTR) rose more about 2%, despite analysts' recent warning that U.S. tariffs on China would increase input costs for the retailer. Dollar Tree imports about 42% of its products, mostly from China, according to the Telsey Advisory Group, a research and consulting firm.
Kohl’s (NYSE:KSS) rose 2% and Target (NYSE:TGT) edged up 0.3%.
On the flip side, industrials were one of the biggest losers on the day. Concerns over growth comes as the IMF lowered its global economic growth forecasts and warned that trade wars and rising import tariffs would weigh on commerce.
Boeing (NYSE:BA) fell more than 2% as JPMorgan warned that the company's 737 production issues were raising the risk of weak third-quarter results, which are slated for Oct. 24.
"We are still not forecasting upside to cash flow guidance due to the cost of 737 delays and the Tanker," JPMorgan said.
3M (NYSE:MMM) and Caterpillar (NYSE:CAT) were 2% down ahead of the close, deepening the decline in industrials.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.