Economy jitters amid WMT results

Small-cap stocks pushed lower this morning, pulled down by renewed worries about consumer spending after the world’s largest retailer posted disappointing December sales. In addition, tech stocks and commodities were on the defensive this morning following losses in overseas trading. At 9:57 a.m. ET, the Russell 2000 (NYSE:IWM) was down 3.82, or 0.77% at 493.28.

Wal-Mart Stores Inc. (NYSE:WMT) reported December same-store sales were up just 1.7%, which was below the projection for a rise of 2.8%. Still, this was a rare increase in sales when many retailers were actually down for the month. Wal-Mart officials also lowered fourth-quarter earnings projections, a familiar trend early this New Year. WMT shares were off about 8% in early trading.

Investors got another glimpse of employment data this morning ahead of Friday’s key monthly jobs report. The weekly unemployment claims release came out at 467,000 which was quite a bit better than feared. The forecast called for about 540,000 ...

For access to the full article, you must be a registered member - it's FREE.

Already a member? Please log in below