NEW YORK (
) -- Retailers are in the red as investors fear disappointing jobs data will reignite consumers' fears.
The Labor Department said on Friday that 431,000 jobs were added in May, lower than the 500,000 economists expected. The majority of these new jobs were actually temporary hires of consensus workers. The unemployment number edged lower to 9.7%.
This follows another disappointing month for retail sales. On Thursday, companies posted lackluster
, with most either missing or just matching Wall Street's estimates.
Both of these issues are weighing on the sector, with the S&P Retail Index tanking 3.3% to 429.67 in midday trading.
Discounters, in particular, are closely tied to unemployment data, as it weighs on their lower-income demographic the most. As a result, shares of
are falling 3.2% to $52.73,
is off 2.9% to $56.27,
is dropping 2.7% to $37.73 and
99 Cents Only Stores
( NDN) is tumbling 5.6% to $14.07.
On top of the jobs data,
didn't help matters. The retail behemoth has been struggling with declining comparable sales and traffic, yet CEO Mike Duke provided little color on how management plans to regain and retain its customer base. Shares of Wal-Mart are falling 2% to $50.71 in midday trading.
Teen retailers, in particular, struggled the most in May, down 2.1% according to
Abercombie & Fitch
is tanking 6.3% to $35.20,
is losing 7.3% to $33.82,
Pacific Sunwear of California
is down 5.4% to $3.48 and
is off 4.4% to $16.67.
Within the department store sector, the losses are staggering.
is face-planting 9.1% to $25.20,
is falling 5.9% to $21.16,
is sliding 6.2% to $25.40,
is plummeting 6.4% to $8.56 and
is diving 5.1% to $36.56.
Still, amid the bloodbath, there's one standout:
is gaining 1.5% to $22.51, although there is no clear, immediate reason for the gain.
-- Reported by Jeanine Poggi in New York.
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