- Kering in Talks to Sell La Redoute to Managers
- European Stocks Log Marginal Gains
- Retail Shares Off for Second Day
Retail stocks helped lead the market lower today as investors backed away from record highs set last week.
The S&P 500 Retailing Industry Group declined 0.8 percent, or 6.53 points, to 843.47 — after topping out at 864.31 on Friday. The Dow Jones Industrial Average fell 0.4 percent, or 61.33 points, to 15,273.26.
The standout decliner was J.C. Penney Co. Inc., which tested lows not seen since 2000 after a bearish report Thursday from two Goldman Sachs analysts. The stock closed down 15 percent to $10.12, leaving it with a market capitalization of $2.23 billion. More than 100 million shares traded hands, better than five times the daily average for the past three months.
Goldman debt analysts Kristen McDuffy and Ryan Gallant initiated coverage on Penney’s with an underperform rating and argued that “a combination of weak fundamentals, inventory rebuilding and an underperforming home department will likely challenge J.C. Penney’s liquidity levels in [the third quarter].”
Fifth & Pacific Cos. Inc. posted a more modest decline, falling 3.7 percent to $23.94 following a WWD report that the frontrunners to buy the company’s Lucky Brand and Juicy Couture divisions both dropped out of the running in recent weeks. The sale process continues.
Also losing ground were Kohl's Corp., down 1 percent to $51.56; Tiffany & Co., 2.1 percent to $77.47; Macy's Inc., 1.8 percent to $42.80; PVH Corp. 2.7 percent to $119.75, and Wal-Mart Stores Inc., 1.5 percent to $74.65.
In Europe, markets were broadly flat. The FTSE MIB in Milan was up 0.1 percent to 18,089.24, while the DAX crept up 0.01 percent to 8,665.63. The FTSE 100 in London, meanwhile, was down 0.3 percent to 6,551.53, and the CAC 40 in Paris edged down 0.01 percent to 4,195.35.
The euro traded at $1.35, while the pound fetched $1.60 and the Swiss franc equaled $1.10.
The day’s gainers included Mulberry Group, which advanced 2.6 percent to 9.79 pounds, and Inditex, 1.1 percent to 114.50 euros.
Among the stocks in retreat were Yoox.com, down 1.4 percent to 26.71 euros; Marks & Spencer Group, 1.6 percent to 4.95 pounds, and the Italian clothing manufacturer Aeffe, which fell 1.6 percent to 0.64 euros.