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Stocks set to end winning streak as retail gets slammed

Winning streak for stocks fades as poor retail results raise doubts about holiday sales

Stocks set to end winning streak as retail gets slammed

NEW YORK (AP) -- More signs of trouble in the retail sector pulled stocks sharply lower Friday as the market heads for its first weekly loss after six straight weeks of gains. Nordstrom plunged after its earnings fell short of forecasts, and the company cut its full-year forecast. Macy's delivered its own disappointing results earlier this week. J.C. Penney and GameStop also fell sharply.

KEEPING SCORE: The Dow Jones industrial average dropped 150 points, or 0.9 percent, to 17,297 as of 10:20 a.m. Eastern time. The Standard & Poor's 500 index lost 17 points, or 0.8 percent, to 2,028. The Nasdaq composite index slid 54 points, or 1.1 percent, to 4,950.

RETAIL WOES: Department store operator Nordstrom retreated $9.97, or 15.7 percent, to $53.50 and watchmaker Fossil Group plunged $15.69, or 30.8 percent, to $35.52 after both companies announced weak third-quarter results and cut their forecasts for the year.

JC Penney's results were about equal to analyst projections, but its stock lost 83 cents, or 9.4 percent, to $7.94. Earlier this week Macy's also posted disappointing quarterly results. The latest reports were another warning sign about the holiday shopping season, which will soon kick into high gear.

WEAK SPENDING: U.S. retail spending edged up just 0.1 percent in October, a bit less than analysts expected. Prices charged by farmers, manufacturers and other producers fell in October. Both measurements show there is little sign of inflation in the U.S. economy. When inflation is higher, consumers have an incentive to spend more money.

THE BIG PICTURE: Stocks rallied in October and had their best month in four years, but they've slipped back in November. The S&P 500 is now negative for 2015. The market is headed for its first weekly loss after six straight weeks of gains.

EUROZONE SLOWDOWN: Economic growth in the countries that use the euro slowed in the third quarter. The figures were disappointing, but they're likely to encourage the European Central Bank to expand a program to stimulate Europe's economy.

OVERSEAS: In Europe, Britain's FTSE 100 dropped 1.4 percent, while France's CAC 40 lost 1.8 percent. Germany's DAX shed 1.5 percent.

COMMODITIES DROPPING: The price of oil continued to fall. U.S. crude slumped $1.19, or 2.9 percent, to $40.57 a barrel in New York. It's at its lowest prices since late August. Brent crude, which is used to price international oils, dipped fell 68 cents, or 1.5 percent, to $44.55 a barrel in London.

Commodities prices are skidding as the Federal Reserve gets ready to raise interest rates just as central banks in Europe and Japan consider new economic stimulus moves. Those moves would make the dollar stronger, making dollar-denominated commodities costlier to buyers using yen, euro and other currencies besides the dollar.

PERRIGO SAYS NO: Shareholders of Irish drugmaker Perrigo rejected a $26 billion offer from generics maker Mylan of the Netherlands. Perrigo fell $11.59, or 7.4 percent, to $144.96 and Mylan climbed $4.94, or 11.4 percent, to $48.14.

BONDS, CURRENCIES: U.S. government bond prices rose, and the yield on the 10-year Treasury note slipped to 2.29 percent from 2.31 percent late Thursday. The euro declined to $1.0743 from $1.0791 and the dollar edged up to $122.73 yen from 122.62 yen.

Updated : 2021-09-22 01:16 GMT+08:00