Star-Bulletin news services
Stock fall as retailer
falls shy of forecasts
NEW YORK >> Wall Street lost some momentum yesterday after Wal-Mart Stores Inc. turned in a disappointing earnings report and government data showed a slightly higher number of jobless claims and a larger-than-expected trade deficit.
Analysts said investors were looking to cash in profits following a sharp run-up in the previous session. With the bulk of earnings already reported and bullish expectations high, the markets are in a period of consolidation, said Richard E. Cripps, chief strategist for Legg Mason of Baltimore.
"There's nothing new occurring now to give incentive for an awful lot of buying, so we're seeing a bit of a pause on the retail stocks," Cripps said. "Wal-Mart put a damper on things, no doubt."
The Dow Jones industrial average ended the day down 10.89, or 0.1 percent, at 9,837.94, following an advance of 111.04 on Wednesday.
The broader gauges were also little changed. The Nasdaq composite index lost 5.76, or 0.3 percent, to close at 1,967.35. The Standard & Poor's 500 index closed down 0.15, or 0.01 percent, at 1,058.41.
Advancing issues outnumbered decliners about 5 to 4 on the New York Stock Exchange. Volume was moderate, with 1.32 billion shares traded, the same as Wednesday.
The Russell 2000 index, which tracks smaller company stocks, closed up 0.54, or 0.1 percent, at 541.20.
The NYSE composite index gained 17.87, or 0.3 percent, to 6,036.81. The American Stock Exchange composite index rose 1.51, or 0.1 percent, to 1,077.66.
The two-year Treasury note increased 832 to 99 1632, with its yield falling 14 basis points to 1.88 percent. The 10-year note rose 1 to 99 2732, with its yield falling 13 basis points to 4.27 percent.
A government report showed the U.S. trade deficit widened to $41.3 billion in September, larger than the $40.2 billion shortfall economists forecast. Imports climbed to an all-time monthly high, a fresh sign of Americans' appetite for foreign-made goods, and exports also posted solid gains, aided by a weaker U.S. dollar.
Separately, new claims for unemployment benefits rose by a seasonally adjusted 13,000 to 366,000 last week, the Labor Department reported. Even with the increase, the level of claims suggested that the labor market is stabilizing, economists said.
Wal-Mart declined $2.44, or 4.2 percent, to $55.52, after its earnings missed analyst estimates by a penny, and indicated earnings for this quarter could also be below current forecasts. Its rival, Target Corp., matched expectations but also saw declines, losing 93 cents to close at $39.00.
Dell Inc. also matched analyst expectations in results released later in the session, and ended the day down 3 cents at $35.64. The computer equipment company reported strong sales and a rise in global server shipments.
STOCK QUOTES/CHARTS/DATA
