Credit Worries Clobber Stocks

Rival Target's (TGT Quote) same-store sales rose 6.1% last month, coming in just ahead of estimates. The retailer also said it expects August comp sales to be up 4% to 6%. Shares of Target shed $2.69, or 4.1%, to $62.52.

Among other retail winners, J.C. Penney (JCP Quote), Saks (SKS Quote) and Macy's (M Quote) all reported comp-store sales that beat estimates.

On the losing side were specialty apparel chains, with American Eagle Outfitters (AEO Quote), Limited (LTD Quote) and Gap (GPS Quote) all reporting weaker-than-expected July results.

Among earnings, Dow component AIG (AIG Quote) after the prior close posted a 34% jump in second-quarter profit, easily topping estimates. Still, AIG gave back $2.18, or 3.3%, to $64.30.

News Corp. (NWS Quote) also reported late Wednesday, matching the Thomson First Call average estimate, as strong cable network results outweighed weakness in the company's movie and television businesses. News Corp. lost 39 cents, or 1.7%, to $22.41.

Elsewhere, Urban Outfitters (URBN Quote) reported a second-quarter profit that was in line with expectations, and HealthSouth (HLS Quote) swung to a second-quarter profit and beat forecasts. Shares of Urban Outfitters were off 4.6% and closed at $23, while HealthSouth was higher by 5.9% at $17.52.

Away from stocks, oil prices continued their recent tailspin. The front-month September crude contract, which has fallen 4.4% so far this week, shed another 56 cents to $71.59 a barrel.