US stocks edged lower on Friday, with retail shares dragged down by a profit warning from J.C. Penney Co Inc and financial shares slipping on persistent worries about credit-related problems. Department store operator J.C. Penney Co Inc shares fell 7.5 percent to $37.50 after the company cut its first-quarter earnings outlook following weak Easter sales.
A decline in financial shares added to the weaker tone. Analysts said investors were worried about holding positions ahead of the weekend, given worries in the sector about credit-related problems as well as the recent liquidity crisis and proposed buyout of Bear Stearns Cos Inc. The S&P index of financial stocks slipped 1 percent, with Citigroup the top drag on the S&P 500, while American Express was the heaviest weight on the Dow.
The Dow Jones industrial average dipped 9.04 points, or 0.08 percent, to 12,293.01. The Standard & Poor's 500 Index slipped 1.98 points, or 0.15 percent, to 1,323.78. The Nasdaq Composite Index declined 3.11 points, or 0.14 percent, to 2,277.72. The J.C. Penney forecast also weighed on other retailers. Kohl's Corp fell nearly 6 percent to $42.04 and Macy's Inc dropped 5 percent to $22.20. On the plus side, shares of Apple climbed 2.5 percent to $143.68.
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