Posted on: Friday, July 9, 2004
Stocks resume decline on bad retail, tech news
By Michael J. Martinez
Associated Press
NEW YORK — Stocks resumed their downward trajectory yesterday as investors, concerned that slumping retail sales would further slow the economy, abandoned small-cap and technology shares.
Wal-Mart Stores Inc., which reported weaker-than-expected June sales because of cooler weather, joined Target Corp. and other retailers in an overall lackluster retail showing. Consumer spending is the biggest catalyst in the economy, and investors worried about the impact the lack of spending would have on corporate earnings.
Yahoo! Inc.'s earnings report, which disappointed investors because of a lower-than-expected outlook, helped drive tech stocks lower.
The retail reports and disappointing earnings overshadowed good news about jobs. The number of first-time jobless claims fell to a three-year low and came in better than analysts expected. However, the creation of jobs still remains an issue after last week's disappointing payroll report for June. The light volume in yesterday's trading showed many investors were keeping to the sidelines.
However, some analysts were happy that despite the bad news — which also included oil prices topping $40 a barrel and new warnings of terror threats in the United States — the market's losses weren't greater.
Declining issues outnumbered advancers by more than 2 to 1 on the New York Stock Exchange, where final consolidated volume came to 1.71 billion shares, compared with 1.63 billion on Wednesday.
The Nasdaq composite index extended its loss for the month to 112 points, while the Standard & Poor's 500 index fell into negative territory for the year.
