US stocks fell on Thursday as major retailers like Target Corp failed to meet July sales expectations and higher oil prices revived concerns that rising energy costs will hurt corporate profits. Retailers' shares generally were down on the day after nearly 60 percent of the July sales reports from the chains came in below market forecasts. Target, the No 2 US discounter, fell 2.7 percent to $56.09.
US crude oil futures rebounded as gasoline rallied amid declining supply and increasing refinery problems. Crude for September delivery settled up 52 cents, or 0.8 percent, at $61.38 a barrel,
The Dow Jones industrial average fell 87.49 points, or 0.82 percent, to end at 10,610.10. The Standard & Poor's 500 index slipped 9.18 points, or 0.74 percent, to finish at 1,235.86. The technology-laced Nasdaq Composite Index dropped 25.49 points, or 1.15 percent, to close at 2,191.32.
Thursday's pullback comes late in a week in which both the S&P 500 and the Nasdaq tested new four-year highs.
After the bell, shares of Microsoft Corp rose 0.3 percent to $27.41 on the Inet electronic brokerage network after the world's largest software maker said it has appointed Kevin Turner, the CEO of Wal-Mart Stores Inc's Sam's Club warehouse stores business, as its new chief operating officer. Wal-Mart's stock fell 2 cents to $49.27 on Inet. During the regular session, negative investor sentiment toward retailers also weighed on the shares of blue chip Wal-Mart even though its July sales were at the high end of expectations, and pressured stocks of retailers that did not report July sales, such as No 1 US home improvement chain Home Depot Inc, also a Dow component.
Wal-Mart shares declined 0.8 percent, or 39 cents, to $49.29, while Home Depot slipped 2.3 percent, or 95 cents, to $41.28.
The jump in crude oil prices weighed on industrial stocks, which are considered benchmarks of the US economy, with 3M Co down 1.1 percent, or 84 cents, at $73.35, and United Technologies Corp down 1.2 percent, or 58 cents, at $49.52. The Standard & Poor's 500 retailing index fell 2.2 percent, adding to Wall Street's worries. Retail sales are a broadly watched measure of consumer spending, which represents a bulk of US economic activity.
In the apparel group, decliners outpaced gainers by nearly 5 to 1, with Aeropostale Inc sliding 7.6 percent, or $2.24, to $27.11, and Abercrombie & Fitch Co dropping 6.7 percent, or $4.68, to $65.56.
Department store operator Nordstrom Inc fell 8.2 percent, or $3, to $33.45, and J.C. Penney Co Inc dropped 4.4 percent, or $2.50, to $53.92 after reporting weaker-than-expected sales. Among retail and commerce-related shares that dragged the Nasdaq down were Bed Bath & Beyond, off 3.1 percent, or $1.40, at $43.75, and eBay Inc, off 1.6 percent, or 72 cents, at $43.83. But Electronic Data Systems Corp shares surged 8.6 percent, or $1.83, to $23.12 and pharmacy benefits manager Caremark Rx Inc jumped 5.2 percent, or $2.30, to $46.96 after the companies offered strong outlooks. Shares of most major oil companies got a lift from rising oil prices. ConocoPhillips rose 0.4 percent, or 28 cents, to $64.18, while Chevron Corp gained 0.1 percent, or 6 cents, to $60.41. An exception to that trend was Dow component Exxon Mobil Corp, down nearly 1 percent, or 48 cents, at $58.52 after it said Chief Executive Lee Raymond, who steered the oil behemoth through booms and busts to its place as the world's most valuable company, will retire at the end of the year.
Volume was fairly active on the NYSE, where about 1.51 billion shares changed hands, above last year's daily average of 1.46 billion, while on Nasdaq, the pace was more moderate, with 1.65 billion shares traded, below last year's daily average of 1.81 billion.
Decliners outpaced advancers by about a 2-to-1 ratio on both the NYSE and the Nasdaq.
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