Page 24 - ATD14NOV2015

A24
BUSINESSSaturday 14 November 2015
Wall Street closes ugly week as retail takes a hit
MARLEY JAY
AP Markets Writer
NEW YORK (AP) — The
stock market slumped to its
second-biggest weekly loss
of the year Friday, breaking
a streak of six consecutive
weeks of gains. Fears that
the holiday shopping sea-
son will be a dud tanked
retail stocks.
Retailers ranging from de-
partment stores to dollar
stores plunged after Nord-
strom posted disappoint-
ing third-quarter results, just crucial moneymaker for spending edged up just a lot of gift giving, a lot of
as Macy’s did earlier this
week.
The price of oil continued
to slide on evidence that
global supplies are still ris-
ing. The dollar could get
even stronger, further pres-
suring oil and other com-
modities and affecting
mining and energy com-
panies.
The Dow Jones industrial
average fell 202.83 points,
or 1.2 percent, to 17,245.24.
The Standard & Poor’s 500
gave up 22.93 points, or 1.1
percent, to 2,023.04. The
Nasdaq composite index
slipped 77.20 points, or 1.5
percent, to 4,927.88.
Concerns about retail sales
and skidding commodities
prices have eroded the
gains from October’s big
stock market rally. Stocks
have now lost ground
seven of the last eight
days. Overall the S&P 500 is
down almost 2 percent for
the year.
Nordstrom sank $9.51, or
15 percent, to $53.96 after
reporting weaker sales. The
company also cut its fore-
cast for the year. Macy’s
had done the same on
Wednesday.
Volkswagen brand sales dip in wake of scandal years. In his speech, Fischer
FRANKFURT, Germany
(AP) — Volkswagen’s flag-
ship brand saw global
auto sales fall 5.3 percent
in October in the wake
of a scandal over cars
equipped with software
that let them cheat on U.S.
diesel emissions tests.
It appeared that econom-
ic downturns in Brazil and
Russia caused as much or
more damage than the
scandal to the month’s fig-
ures. Volkswagen has been
No. 2 Fed official:
Economy growing
The holiday shopping rush noon and also said it will smartphones and TVs and
will kick into high gear with buy activity tracker maker other big items than they despite signs of
Black Friday in two weeks. Misfit for $260 million. Its used to, there will still be global weakness
Following several weak re- shares hit their lowest level plenty of socks and sweat-
ports from retailers, inves- in five years. ers given as gifts over the M. CRUTSINGER
tors are becoming worried Compounding those wor- holidays. AP Economics Writer
that sales will be poor dur- ries was a government re- “Christmas is boxed gifts,” WASHINGTON (AP) — The
ing that period, which is a port showing that U.S. retail Jaffe said. “There will be No. 2 official at the Fed-
eral Reserve said Thursday
Traders work on the floor of the New York Stock Exchange, Friday, Nov. 13, 2015. Retailers are that the strong dollar and
global economic weak-
plunging Friday as earnings reports from Nordstrom and others touched off investor worries that ness have been a drag on
growth, but the U.S. econ-
the holiday shopping season will be a dud. (AP Photo/Richard Drew) omy has been weathering
the shocks reasonably well.
Fed Vice Chairman Stanley
Fischer said that the deci-
retail companies. Macy’s 0.1 percent in October, a apparel sales.” Jaffe noted sion by the central bank to
keep its ultra-low interest
and Nordstrom both hit bit less than analysts ex- that Americans’ shopping rate policies in place has
been a key factor in shield-
two-year lows Friday. Con- pected. Prices charged habits have changed a ing the economy. But he
noted some sectors heav-
sumer discretionary stocks by farmers, manufacturers lot over the last few years. ily exposed to international
trade have been affected.
were by far the worst per- and other producers fell in Consumers are spending The Fed raised the possibil-
ity at its last meeting that
forming group in the S&P October. The figures show more on homes, cars, and when it meets again in De-
cember, it could begin rais-
500. there is little sign of inflation vacations. Aging baby ing interest rates, something
it has not done in nearly a
J.C. Penney’s results were in the U.S. economy. When boomers don’t buy clothes decade. Fischer said a Fed
rate hike will depend on
about equal to analyst inflation is higher, consum- as often as they used to, how the economy is per-
forming when officials meet
projections, but its stock ers have an incentive to and younger shoppers are on Dec. 15-16. “As policy-
makers, we must always be
lost $1.35, or 15.4 percent, spend more money. more interested in technol- vigilant to events unfolding
differently than we expect
to $7.44. Video game re- Stifel Nicolaus analyst Rich- ogy. and we must be ready to
act accordingly,” Fischer
tailer GameStop sank ard Jaffe suggested the The price of oil continued said in comments delivered
to a Fed research confer-
$7.35, or 16.5 percent, to widespread selling was to fall after the Interna- ence where Fed Chair
Janet Yellen also spoke.
$37.18. Watchmaker Fos- an overreaction. Shop- tional Energy Agency said Neither Yellen nor Fischer
revealed what the Fed will
sil Group plunged $18.62, pers will spend plenty of commercial inventories do at the December meet-
ing, although private econ-
or 36.5 percent, to $32.39. money this holiday season, reached almost 3 billion omists are moving to the
view that the central bank
Fossil posted disappointing he said, and while they’re barrels at the end of Sep- will act to boost its bench-
mark short-term rate, which
earnings Thursday after- spending more money on tember, a record.q has been at a record low
near zero for the past seven
said that the dollar has risen
trying to limit sales damage Sales fell 26 percent in Rus- ments of how much car- in value by about 15 per-
in the United States by of- sia and 50 percent in Brazil. bon dioxide the cars emit. cent since July 2014 com-
fering existing Volkswagen The U.S. Environmental Pro- Carbon dioxide is a green- pared to the currencies of
owners $2,000 off if they tection Agency says Volk- house gas blamed by sci- America’s major trading
trade their old car in for a swagen equipped 482,000 entists for global warming, partners. That increase has
new VW model. cars with software that and faces increasingly cut into U.S. export sales by
Figures released Friday turned off emissions con- strict limits in Europe. making American-made
showed sales in the U.S. trols and enhanced per- For all of Volkswagen’s goods more expensive on
— where the scandal first formance when the cars brands — which also overseas markets. But the
broke on Sept. 18 — were were not being tested. include SEAT, Skoda, higher value of the dollar
up 0.2 percent. Sales in The company says up to Porsche, Audi and Lam- had also lowered inflation
North America including 11 million cars have the borghini — global sales fell by making imports less ex-
Canada rose 3.5 percent deceptive software, and 3.5 percent to 831,3000 in pensive for U.S. consumers,
from the same month a adds that it has uncovered October compared with a acting to keep prices rising
year earlier. “irregularities” in measure- year earlier.q well below the Fed’s target
of 2 percent.q