Business

Wall Street sells off - again

Weak results from Target, Kohl's pressure retail stocks

Reuters

Traders work on the floor at the New York Stock Exchange on Tuesday.
Reuters Traders work on the floor at the New York Stock Exchange on Tuesday.

NEW YORK — Stocks sold off for a second day on Tuesday as energy shares dropped with oil prices. Retailers including Target and Kohl’s sank after weak earnings and forecasts, fueling worries about economic growth.

The Nasdaq closed at its lowest level in more than seven months while the S&P 500 and Dow ended at their lowest since late October.

This came a day after Apple, internet and other technology shares dropped, further shaking confidence in a group of stocks that has propelled the long bull market.

Apple shares dropped again on Tuesday, falling 4.8 percent to its lowest level since early May, as concerns lingered over slowing demand for iPhones.

Target Corp shares slumped 10.5 percent after third-quarter profit missed analysts’ estimates. The company’s investments in its online business, higher wages and price cuts hurt margins.

Department store operator Kohl’s shed 9.2 percent after its full-year profit forecast fell below expectations.

Warnings from retailers added to caution for investors, already on edge over recent sharp losses in technology shares, a slowdown in global growth, peaking corporate earnings and rising interest rates.

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“It’s the market adjusting to an early 2019 that looks different from the months of 2018 in that there have been mounting concerns over global growth,” said Quincy Krosby, chief market strategist at Prudential Financial in Newark, N.J. “U.S. growth is not weakening dramatically but slowing.”

The day’s losses left the S&P 500 and Dow in negative territory for the year, with the Dow now down about 1 percent and the S&P 500 down 1.1 percent since Dec. 31.

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