Retailers slide as Nasdaq ekes out 3rd record close

20 Jul, 2017

Trading was muted after all three leading US indices finished at records on Wednesday, as investors shrugged off decisions by the Bank of Japan and European Central Bank to keep interest rates low.

Earnings for the second quarter continued to best overall expectations, although some laggards were punished. Dow members American Express and Travelers fell 0.7 percent and 1.5 percent following disappointing reports.

But the biggest loser in the blue-chip index was Home Depot, which slumped 4.1 percent after Sears announced a deal with Amazon to sell Kenmore appliances on the e-commerce platform. Sears rose 10.6 percent and Amazon 0.2 percent.

The transaction hearkens tougher competition for companies like Home Depot that sell appliances. Lowe's and Best Buy also fell sharply.

The Dow Jones Industrial Average finished down 0.1 percent at 21,611.78.

The broad-based S&P 500 lost a hair to end at 2,473.45, while the tech-rich Nasdaq Composite Index added 0.1 percent at 6,390.00.

Nike jumped 2.3 percent following an upgrade from Morgan Stanley, which predicted stronger sales in North America and said innovations to the athletic gear company's supply chain should boost profit margins.

Chipotle Mexican Grill slid 4.5 percent as the count of consumers sickened by an apparent norovirus outbreak at a northern Virginia store grew to above 130, according to reports. The restaurant chain was also was on the defensive after video captured mice scampering across the floor of a Dallas restaurant.

 

Copyright AFP (Agence France-Press), 2017
 

 

 

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