Retail Investors Fear No Jobs = No Shopping

No one's shopping if they don't have a job -- or such is the fear of investors today, who have sent retail shares plummeting on the back of today's dismal jobless data.

The S&P Retail Index fell 4% to 309.38 in afternoon trading, with almost every single retailer awash in red, as more jobs were lost in June than were expected.

The sector was led down by Rite Aid(RAD Quote), which posted a .6% decline in June same-store sales earlier in the day. Shares of the drugstore plunged 10% to $1.39 in afternoon trading.

If there was a winner in this gloomy day, Walgreen(WAG Quote) would be it. The company reported better same-store sales of 3.4%, but shares still tumbled 2% to $28.88.

Another big loser was OfficeMax(OMX Quote), which tanked 10% to $5.75, while rival Office Depot(ODP Quote) also fell 8% to $4.20.

In the discount sector, Target(TGT Quote) sank 4% to $37.30 in afternoon trading, while retail giant Wal-Mart Stores(WMT Quote) slipped 1% to $48.01.

The only retailer in the green was, oddly enough, New York & Company(NWY Quote), which gained 2% to $3.23. Other women's apparel retailers weren't so lucky. AnnTaylor Stores(ANN Quote) declined 7% to $7.77, Chico's FAS(CHS Quote) shed 7% to $9.20 and Coldwater Creek(CWTR Quote) dropped 3% to $6.33.

Talbots(TLB Quote) also fell 8% to $4.98 after the company announced the sale of its J.Jill chain was complete. Earlier in the month, the company said it would sell its flailing J.Jill brand to private-equity firm Golden Gate Capital for $75 million.