Home / Business / US stocks fall as retail suffering continues; oil slips
FILE - This Thursday, Oct. 2, 2014, file photo, shows the facade of the New York Stock Exchange. Stock markets around the world and oil prices were weighed down Friday, May 13, 2016, by concerns over the global economy ahead of a raft of U.S. and Chinese economic data. (AP Photo/Richard Drew, File)
FILE - This Thursday, Oct. 2, 2014, file photo, shows the facade of the New York Stock Exchange. Stock markets around the world and oil prices were weighed down Friday, May 13, 2016, by concerns over the global economy ahead of a raft of U.S. and Chinese economic data. (AP Photo/Richard Drew, File)

US stocks fall as retail suffering continues; oil slips

NEW YORK (AP) — U.S. stocks are skidding Friday afternoon as retailers continue to report plunging first-quarter sales. Energy companies are falling as the price of oil slips following a string of recent gains. Stocks are on track for their third straight week of losses.

KEEPING SCORE: The Dow Jones industrial average gave up 114 points, or 0.6 percent, to 17,606 as of 1:40 p.m. Eastern time. The Standard & Poor’s 500 index fell 11 points, or 0.6 percent, to 2,052. The Nasdaq composite index lost 10 points, or 0.2 percent, to 4,727.

RETAIL WRECKAGE: Nordstrom slashed its annual projections and said a key measure of sales fell for the first time in almost seven years. Nordstrom’s stock tumbled $5.57, or 12.3 percent, to $39.66. J.C. Penney’s and Dillard’s also reported results that came up short of analyst estimates.

Retailers have seen their stocks plunge in the last few days following a series of weak reports. Nordstrom has tumbled 17 percent this week and Macy’s has fallen 16 percent. Kohl’s is up 4 percent Friday and has recovered some of its losses from Thursday, but it’s still down about 11 percent for the week.

SILVER LINING: The Commerce Department said total retail sales in the U.S. improved in April, suggesting spending might have rebounded after a weak first quarter. Retail sales slipped in March as car sales decreased.

Retail sales have climbed 3 percent over the last year. But the report contained still more bad news for department stores: online and catalog shopping jumped 10 percent from a year ago, and sales at department stores are down almost 2 percent.

THE QUOTE: While retailers are having trouble, Mike Ryan, chief investment strategist for UBS Wealth Management Americas, said consumers are still spending and he’s starting to see evidence that the U.S. economy recovered in the second quarter. But that doesn’t mean stocks are going to surge the way they did in February and March.

“I think markets can and will grind higher over the course of the next six months,” he said. “A lot will hinge on corporate profits.”

ENERGY: Benchmark U.S. oil fell 55 cents, or 1.2 percent, to $46.18 a barrel in New York, while Brent crude, the benchmark for international oil prices, lost 30 cents to $47.79 a barrel in London.

That pulled energy stocks down. Exxon Mobil lost 76 cents to $88.91 and Murphy Oil fell 67 cents, or 2.2 percent, to $29.68.

HANGING UP: Phone companies and consumer stocks also traded lower after advancing on Thursday. AT&T lost 28 cents to $39.27 and Verizon sank 38 cents to $51.09. Among consumer companies, Wal-Mart gave up $1.68, or 2.5 percent, to $65.17 and Costco sank $1.51, or 1 percent, to $145.21.

BURGER BOUNTY: Shake Shack’s profit and sales beat estimates, in part because consumers snapped up its new fried chicken sandwich. The burger chain raised its estimates for sales and said it will open more stores than it previously planned. The stock gained $1.82, or 5.3 percent, to $36.08.

FEELING CHIPPER: Graphics chip and processor maker Nvidia surpassed Wall Street forecasts in the first quarter, and its stock jumped $4.84, or 13.6 percent, to $40.41.

OVERSEAS: Germany’s DAX rose 0.9 percent and the CAC-40 in France gained 0.3 percent. The FTSE 100 in Britain was 0.6 percent higher. Japan’s benchmark Nikkei 255 index lost 1.4 percent and South Korea’s Kospi shed 0.5 percent. Hong Kong’s Hang Seng fell 1 percent.

BONDS, CURRENCIES: U.S. government bond prices rose. The yield on the 10-year U.S. Treasury note dipped to 1.71 percent from 1.76 percent. The euro fell to $1.1294 from $1.1373 and the dollar slid to 108.86 yen from 109.14 yen.

Related news: US stocks slip after unemployment claims rise; tech slumps

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