Stock market opens lower after Nordstrom joins other retailers in cutting outlook

The Standard & Poors 500 index slipped 5 points, or 0.3 percent, to 1,657. The Nasdaq composite rose one point, or 0.05 percent, to 3,607. More business news Zachary A. Goldfarb Racial progress past and future will converge when he marks 50 years since the March on Washington. More business news Department store Nordstrom cut its profit outlook for the year late Thursday. Its stock fell $1.83, or 3 percent, to $57.46.

Disruptions in electronic markets have been under scrutiny since a May 2010 incident in which the Dow Jones Industrial Average fell almost 1,000 points in minutes before rebounding. This is a negative development for wwwtckyohotcom Everbrights stock, said Liu Jun, an analyst at Chang Jiang Securities Co. in the central city of Wuhan. Everbright Securities business transformation has been slower than expected and its investment banking business is under investigation, which could affect its bond underwriting. The Shanghai Composite jumped from a loss of as much as 1 percent to a gain of 5.6 percent in two minutes during the morning session, as 16 of the measures 20 biggest companies by weighting increased by the 10 percent daily limit.

and AT&T Inc. fell 1.7 percent and 0.5 percent, respectively. Stocks such as utilities, pharmaceuticals and telecommunications are often purchased because they provide a higher-than-normal dividend. As Treasury yields rise, it makes all dividend-paying stocks less attractive to investors because Treasuries can provide a similar return with significantly less risk. You try to focus on stocks that usually benefit from higher interest rates — banks are a good example, said John Fox, who oversees $873 million in assets as co-manager of the FAM Value Fund. The Dow has fallen 3.7 percent from its all-time high of 15,658.36 two weeks ago.

Nordstrom shares fell $2.13, or 3.6 percent, to $57.20, making it the second-biggest decliner in the S&P 500. The retail industry is a closely-watched part of the U.S. economy as consumer spending makes up roughly 70 percent of economic activity. The disappointing outlooks are especially worrisome because they come during the back-to-school shopping season, typically the second-biggest shopping period for U.S. retailers.


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