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NEW YORK -- An unimpressive outlook from the nation's retailers sent stocks sliding today as investors looked in vain for signs that the economy would improve anytime soon. Dow drops 66
Associated Press
The Dow Jones industrial average closed down 66.17 at 10,880.55. The Nasdaq composite index slipped 45.76 to 2,562.06, its lowest close since Jan. 10, when the index fell to 2,524.18. The Standard & Poor's 500 index tumbled 8.36 to 1,332.53. Decliners led advancers an 8-to-7 margin on the New York Stock Exchange, with 1,639 down, 1,426 up and 218 unchanged. Volume came to 1.090 billion shares, 1.14 billion yesterday.
The 10-year Treasury note's price was unchanged and its yield 5.09 percent. Prices and yields move in opposite directions. The 30-year bonds were up 12/32 point, and yielded 5.53 percent.
The NYSE slipped 1.84 to 657.76; the American Stock Exchange composite fell 2.56 to 936.42; and the Russell 2000 index was off 4.19 at 502.89.
Although some January sales were better than expected, analysts attributed the gains to deep discounts, rather than any pickup in consumer spending -- or the economy -- in the near future. "It's just another sector being hurt by the slowdown in the economy, just like we saw in technology," said Robert Harrington, head of equity trading at UBS Warburg. "I think people are in a holding pattern right now, with the market very focused on specific stocks."
Retailers had Wall Street's attention as they released January sales figures. Some results came in stronger than expected, thanks to aggressive markdowns, but investors weren't reassured. They sold off retailers on fears that the unimpressive numbers signal that an economic recovery is still a while away. The Gap fell $2.95 to $26.61, a 10 percent decline, after it reported a sharp drop in sales. Investors also punished Kmart, down 15 cents at $8.74, and Sears, down $1.25 at $37.60, even though both stores reported sales gains.