Page 25 - ARUBA TODAY

BUSINESS Wednesday 16 august 2017
A25

Retailers stumble but stocks are little changed overall

By MARLEY JAY competition from online re-
AP Markets Writer tailers is growing. Advance
NEW YORK (AP) — U.S. stock Auto Parts dropped $22.24,
indexes finished Tuesday or 20.3 percent, to $87.08.
close to where they started AutoZone sank $9.19, or 1.7
as technology compa- percent, to $516.13 and
nies and household goods O’Reilly Automotive gave
makers rose. But weak re- up $2.44, or 1.2 percent, to
ports from sporting goods $196. All three have taken
and auto parts retailers left steep losses this year.
a lot of smaller companies Luxury retailer Coach tum-
with steep losses. bled after its fourth-quarter
Dick’s Sporting Goods and sales and its profit forecast
Advance Auto Parts both for the current fiscal year
disclosed disappointing came up short of analyst
second-quarter results and estimates. Its shares fell
cut their annual forecasts, $7.28, or 15.2 percent, to
which affected a slew of $40.64.
other companies. Other Bond prices fell. The yield on
retailers also dropped, the 10-year Treasury note
including Home Depot, rose to 2.27 percent from
which posted strong re- 2.22 percent. Fifth Third
sults. Other groups of stocks Bancorp rose 34 cents, or
managed modest gains. Specialist Michael O’Mara, left, and trader Gregory Rowe work on the floor of the New York Stock 1.3 percent, to $27.02 and
“Especially in the month of Exchange. U.S. stock indexes finished Tuesday close to where they started as technology compa- Discover Financial Services
August, when not as many nies and household goods makers rose. (AP Photo/Richard Drew) added $1.37, or 2.3 per-
investors are around, you cent, to $61.87.
get a lot of this group trad- Foot Locker fell $2.19, or 4.4 shed $1.22, or 2 percent, to nual forecasts. The compa- Warren Buffett’s Berkshire
$58.56 and Under Armour ny and its competitors are
percent, to $47.13 and Hib-
ing,” said Brian Nagel, ana- Hathaway bought stock in
lyst who covers retailers for bett Sports dropped $2.30, lost 45 cents, or 2.6 percent, facing weakening demand consumer credit company
because car sales are slow-
or 16.5 percent, to $11.65. to $16.66.
Oppenheimer & Co. Synchrony Financial and
Nagel said struggles for Athletic apparel compa- Advance Auto Parts tum- ing down from their recent picked up more shares of
record pace. Meanwhile
nies also lost ground. Nike bled after it slashed its an-
Dick’s and Advance Auto Bank of New York Mellon.q
Parts don’t say anything
about how retailers in oth-
er industries are doing, but US businesses increase stockpiles in June
if investors grow pessimistic
about retail, they may sell the slight 0.1 percent gain
all kinds of retailers when in May. Economists expect
one part of the industry that inventory growth will
struggles. strengthen further in com-
The Standard & Poor’s 500 ing months and help sup-
index lost 1.23 points, or port overall economic ex-
less than 0.1 percent, to pansion.
2,464.61. The Dow Jones Annual GDP growth im-
industrial average picked proved to 2.6 percent
up 5.28 points to 21,998.99. in the second quarter of
The Nasdaq composite fell 2017. That follows a tepid
7.22 points, or 0.1 percent, 1.2 percent expansion in
to 6,333.01. The Russell 2000 the first quarter, which was
index of smaller-company dragged down in part be-
stocks shed 11.07 points, cause inventories subtract-
or 0.8 percent, to 1,383.24. ed from overall economic
The S&P 600, an index of activity.
small-cap stocks, plunged Wholesalers led the way
1 percent. Customers look at Harley-Davidson motorcycles in the showroom at a dealership in Miami. On in June with 0.7 percent
Stocks were coming off Tuesday, Aug. 15, 2017, the Commerce Department reported on business stockpiles in June. gains in both sales and
their biggest one-day gain (AP Photo/Alan Diaz) inventories.q
in more than three months By MATT OTT best showing since inven-
as the market recovered Associated Press tories had risen 0.9 percent
from last week’s turmoil. WASHINGTON (AP) — U.S. in November.
Dick’s Sporting Goods cut businesses increased their When businesses increase
its annual forecast after a stockpiles in June by the stockpiles, it is gener-
weak second quarter. The largest amount in seven ally seen as a sign of their
sporting goods chain said months, while sales also confidence that sales will
athletic apparel sales were rose. increase in the coming
weak and that it plans to The Commerce Depart- months. A decrease in in-
do more marketing and ment says business inven- ventories can be a sign
cut prices as it tries to keep tories rose by a season- of pessimism about future
its market share. Its stock ally adjusted 0.5 percent in sales.
plunged $8.04, or 23 per- June, following May’s gain Sales increased 0.3 per-
cent, to $26.87. of 0.3 percent. It was the cent, an improvement over