NEW YORK ( TheStreet) -- Retailers are in the red, after a disappointing start to the earnings season, new low in consumer confidence and the downgrade of the world's retail behemoth. Consumer confidence hit an 11-month low in the first half of July, according to a survey from Reuters and the University of Michigan. The Consumer Confidence Index dropped to 66.5 from 76 in late June, as consumers worry about the slow speed of the economic recovery. Economists were predicting a significantly higher reading of 74.3. This lackluster data sent the S&P Retail Index tumbling 1.7% to 397.05 in morning trading. Discount giant Wal-Mart ( WMT)saw its same-store sales and profit estimates cut by Sanford C. Bernstein. Analyst Colin McGranahan said the departure of Eduardo Castro-Wright as CEO of U.S. division, and John Fleming resigning as chief merchandising officer, could create some "near-term execution risk." Wal-Mart influx of rollbacks have also not helped the company as much as expected, and McGranahan warned the company may not be able to retain the customers it won during the recession. As a result, McGranahan cut his second-quarter U.S. same-store sales estimate to down 0.5% from a 1.5% increase, and his profit forecast to 96 cents a share from 99 cents. For the year, he is now expecting same-store sales to fall 0.3% from a 1.1% gain, and a profit of $3.99 from previous outlook of $4.04 a share. Shares of Wal-Mart are off 1% to $49.92 in morning trading. GameStop is declining 2.1% to $19.12, following weak June video game sales. For the month, overall sales dropped 6.1% to $1.1 billion, according to the NPD Group. Sales of software plunged 15% to $531.5 million, while hardware jumped 5% to $401.7 million. J.Crew ( JCG), is tanking 6.9% to $32.70, after J.P. Morgan lowered its estimates and target price on the stock. Analyst Brian Tunick said he is concerned about merchandise margins headed into the first-half of 2011. "While second-quarter results should come in above Street expectations, we anticipate downbeat commentary from management regarding the second-half of 2010 and 2011 margin trends due to inventory and sourcing; which, coupled with the fact that Street estimates have still yet to see their first downward revisions in over 12 months, should continue to put pressure on shares," he wrote in a note. Tunick now expects full-year profit of $2.48 a share from $2.50, and full-year 2011 earnings of $2.65 a share, from prior outlook of $2.88. He also lowered his price target to $37 from $48. Other notable losers include Abercrombie & Fitch ( ANF), which is sinking 4.1% to $33.90, eBay ( EBAY), which is is slumping 2.9% to $20.43, and Borders ( BGP), which is dropping 6% to $1.40. Nordstrom ( JWN) is a hot search term as the high-end department store kicks off its anniversary sale today, giving shoppers a chance to save on new fall merchandise. The promotion will run until Aug. 1. This sale has traditionally been highly successful for Nordstrom and should help propel July sales. Still, Nordstrom's stock is following the rest of the market, down 3.9% to $32.89. -- Reported by Jeanine Poggi in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.