Midday Report: American Eagle Suffers Warm Winter; Rally Fades

A stock rally quickly faded Friday as both China and the possibility of a March rate hike dampened enthusiasm over a huge increase in U.S. jobs. The chances of a rate hike in March climbed to 52 percent, up from previous odds in the low $40s. The Container Store (TCS) tumbled after swinging to a quarterly loss, while same-store sales rose just 0.5 percent. The retailer said its loss was tied to higher promotional spending to boost sales. Urban Outfitters (URBN) was lower after a disappointing holiday-shopping period. The company reported a 2 percent decline in same-store sales for the two months to end last year, though it said it was optimistic for improvement in spring. American Eagle Outfitters (AEO) plummeted after warning same-store sales could miss estimates.