Stocks barely budge, but retailers take hits
U.S. stock NEW YORK — indexes finished Tuesday close to where they started as technology companies and household goods makers rose. But weak reports from sporting goods and auto parts retailers left a lot of smaller companies with steep losses.
Dick’s Sporting Goods and Advance Auto Parts both disclosed disappointing second-quarter results and cut their annual forecasts, which affected a number of other companies. Other retailers also dropped, including Home Depot, which posted strong results.
Other groups of stocks managed modest gains.
“Especially in the month of August, when not as many investors are around, you get a lot of this group trading,” said Brian Nagel, analyst who covers retailers for Oppenheimer & Co.
Nagel said struggles for Dick’s and Advance Auto Parts don’t say anything about how retailers in other industries are doing, but if investors grow pessimistic about retail, they may sell all kinds of retailers when one part of the industry struggles.
The Standard & Poor’s 500 index lost 1.23 points, or less than 0.1 percent, to 2,464.61. The Dow Jones industrial average picked up 5.28 points to 21,998.99. The Nasdaq composite fell 7.22 points, or 0.1 percent, to 6,333.01. The Russell 2000 index of smaller-company stocks shed 11.07 points, or 0.8 percent, to 1,383.24. The S&P 600, an index of small-cap stocks, plunged 1 percent.
Stocks were coming off their biggest one-day gain in more than three months as the market recovered from last week’s turmoil.
Dick’s Sporting Goods cut its annual forecast after a weak second quarter. The sporting goods chain said athletic apparel sales were weak and that it plans to do more marketing and cut prices as it tries to keep its market share. Its stock plunged $8.04, or 23 percent, to $26.87.
Foot Locker fell $2.19, or 4.4 percent, to $47.13 and Hibbett Sports dropped $2.30, or 16.5 percent, to $11.65. Athletic apparel companies also lost ground. Nike shed $1.22, or 2 percent, to $58.56 and Under Armour lost 45 cents, or 2.6 percent, to $16.66.
Advance Auto Parts tumbled after it slashed its annual forecasts. The company and its competitors are facing weakening demand because car sales are slowing down from their record pace.
Advance Auto Parts dropped $22.24, or 20.3 percent, to $87.08. AutoZone sank $9.19, or 1.7 percent, to $516.13 and O’Reilly Automotive gave up $2.44, or 1.2 percent, to $196.
All three have taken steep losses this year.
Bond prices fell. The yield on the 10-year Treasury note rose to 2.27 percent from 2.22 percent.
U.S. crude oil lost 4 cents to $47.55 a barrel in New York. Brent crude, the international standard, added 7 cents to $50.80 a barrel in London. Energy companies fell as well. Schlumberger fell 51 cents to $63.44 and Occidental Petroleum declined 62 cents, or 1 percent, to $60.62.