Stocks Drop, Hurt by Worries Over U.S. and European Economies
The benchmark 10-year Treasury was up 5/32, diluting the yield to 1.604%, while the dollar was rising 0.74%, according to the dollar index.
In corporate news, sales at many of the top U.S. retailers were hurt in June by worries about the economy and the still high unemployment rate.
Costco (COST), the warehouse retailer, said same-store sales in June rose 3%. Analysts were expecting same-store sales to rise 3.7%. Total sales for the month rose 6% to $9.18 billion from $8.69 billion a year earlier.
Shares ended Thursday down less than 0.5%.Kohl's (KSS), Target (TGT) and Macy's (M) also reported disappointing June same-store sales. Still, Kohl's shares were jumping nearly 7% and Macy's was up more than 3%. Target was down 0.7%. Walgreen (WAG) and Rite Aid (RAD) posted declines in same-store sales. However, Walgreen shares were up 1.3% while Rite Aid gave up more than 2%. Lower-priced retailers such as TJX (TJX) and Ross Stores (ROST) posted a jump in sales and raised their quarterly earnings outlooks as consumers shopped for bargains on designer apparel and home products. Ross Stores shares popped nearly 7%, and TJX climbed more than 3%. "There were also some same-store sales numbers that looked pretty good, and we have the retail sector [looking] pretty strong on those numbers," said Salamone.
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