Sometimes, even the markets act rationally. Such is the case today, as investors realize May same-store sales will continue to be disappointing, and retailers are finally giving up their unfounded gains.
The S&P Retail Index fell 1% in morning trading to 340.11 after piling on more than 7% since the close on Friday.
Some of the morning's biggest losers included
, which fell 7.5% to $13.60 after it maintained its cautious full-year outlook. The company managed to record a smaller-than-expected loss in the second quarter, but doesn't see much hope for a turnaround in the near-term.
also gave up several days of big numbers, falling 5.5% to $1.35, while rival
slipped 3% to $30.49.
In the department store sector,
sank 4% to $13.37,
slipped 1% to $66.42 and
fell 2% to $30.38.
tumbled 8.5% to $8.60.
expect May same-store sales results to still be negative, albeit better than April.
"Even with the earlier Memorial Day holiday somewhat easing comparisons, and materially warmer weather throughout most of the country,
May should see another month of weak results, as consumers remain focused on value and compelling items," Eric Beder, analyst at Brean Murray Carret, wrote in a note on Monday.
There were a few sprinkles of green in the sector, most notably from
, which gained 2% to $50.95. In April, the big-box retailer announced it will no longer report monthly sales.
also saw some big gains, soaring more than 19% to $4.99, after it was upgraded by an analyst on the belief that it will soon sell its J.Jill chain.