Thursday, November 15, 2012

Stocks edge lower after weak retail reports

Traders work on the floor at the New York Stock Exchange, Thursday, Nov. 15, 2012. Stock indexes are inching higher in early trading Thursday after U.S. retail giants Wal-Mart and Target turned in mixed earnings reports. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange, Thursday, Nov. 15, 2012. Stock indexes are inching higher in early trading Thursday after U.S. retail giants Wal-Mart and Target turned in mixed earnings reports. (AP Photo/Seth Wenig)

Traders work on the floor of the New York Stock Exchange, Thursday, Nov. 15, 2012. Stock indexes are inching higher in early trading Thursday after U.S. retail giants Wal-Mart and Target turned in mixed earnings reports.(AP Photo/Seth Wenig)

(AP) ? Stock indexes edged lower Thursday after U.S. retailers issued weak forecasts for earnings and jobless claims rose.

Wal-Mart, Ross Stores and Limited Brands, the owner of Victoria's Secret, all fell after issuing forecasts that disappointed financial analysts. Wal-Mart fell $2.56, or 3.6 percent, to $68.75.

The Dow Jones industrial average wavered between small gains and losses shortly after the opening bell, then moved lower at midmorning. As of 2:45 p.m. EST, it was down 32 points at 12,538.

The Standard & Poor's 500 index was down two points at 1,353 and the Nasdaq composite was down eight at 2,837.

Stocks have fallen steadily since voters returned President Barack Obama and a divided Congress to power. The Dow lost 5 percent from Election Day, Nov. 6, through Wednesday's close.

Investors are worried about whether they will reach a deal before tax increases and government spending cuts take effect Jan. 1. The impact would total $700 billion for 2013 and could send the country back into recession.

President Barack Obama is to meet with congressional leaders Friday to talk about the budget, but he appeared to suggest Thursday that he would insist on an increase in tax rates for the wealthy.

T. Dale, a portfolio manager at Security Ballew Wealth Management in Jackson, Miss., said that stocks are more likely to fall than rise, partly because of slowing global economic growth and the U.S. budget impasse.

"The market has gotten well ahead of itself," Dale said.

Superstorm Sandy drove the number of people seeking unemployment benefits up to 439,000 last week, the Labor Department reported. Applications for benefits rose 78,000, mostly because a large number were filed in storm-damaged states.

The European Union's statistics agency confirmed that the eurozone, the group of 17 countries that use the euro currency, are in recession. The overall economy shrank 0.1 percent in the third quarter from the previous three-month period.

Among the retailers disappointing Wall Street with lower earnings forecasts, Ross Stores, whose stores includes Ross Dress for Less, fell 78 cents, or 1.4 percent. Limited Brands dropped $1.20, or 2.6 percent, to $45.40.

The yield on the 10-year Treasury note was little changed at 1.59 percent.

Among stocks making big moves:

? NetApp, a data storage business, jumped $2.92 to $30.05 after the company reported earnings that were higher than analysts were expecting.

? Viacom, the owner of Nickelodeon, MTV and the Paramount movie and TV studio, rose $1.73 to $49.72. The media conglomerate did better than investors had expected thanks to lower costs and higher fees from cable and satellite companies for carrying its cable networks.

? Petsmart, a specialty pet retailer, jumped $2.31 to $67.17 after raising its full-year outlook.

? Target rose $1.19 to $62.58 after reporting that its profit rose more than analysts had forecast. The company also issued a strong outlook heading into the critical holiday season.

? Dollar Tree, a discount retailer that sells items for $1 or less, gained $2.08 to $39.82 after the company said its net income gained 49 percent in the third quarter.

? Apple's market value fell below $500 million for the first time since May, as the maker of smartphones and tablets dropped $8.01 to $529. The company's market value climbed as high as $658 million Sept. 19, according to FactSet data.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2012-11-15-Wall%20Street/id-5a1f034c2ec5425f9f41d4f0b8ace010

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