Retail, media firms pull down stocks
stock indexes retreated from their record highs Thursday as retailers and media companies declined and investors shrugged at quarterly reports from a few big banks.
Clothing companies and other retailers fell after women’s clothing company J. Jill slashed its third-quarter forecast. The company’s stock lost more than half its value.
AT&T had its worst oneday loss since 2008 after it said it lost more satellite and cable TV subscribers. Other cable and satellite TV companies also stumbled. Industrial companies and household goods makers finished higher.
AT&T fell 6.1% to $35.86. after it said it lost about 90,000 DirecTV video subscribers in the U.S. in the third quarter because of growing competition in streaming video services.
Verizon Communications slipped 1% to $48.35. Cable provider Comcast fell 3.8% to $35.95. Dish Network slid 5.1% to $49.03. Cable channel operator Discovery Communications retreated 3.6% to $19.28.
Industrial and transportation companies such as railroads did better than the rest of the market. Machinery maker Caterpillar rose 1.1% to $129.99. Railroad operator Norfolk Southern rose 1.7% to $133.69.
J. Jill’s stock plunged 51.1% to $4.86 after the retailer of women’s clothes, shoes and accessories slashed its outlook for the third quarter. The company said that retail and directto-consumer sales both fell short of its expectations and that it cut its earnings forecast in half. J. Jill opened at $13 a share after its March IPO.
Retailer Express tumbled 8.3% to $5.88. Chico’s FAS fell 7.2% to $7.40 and Gap sank 4.3% to $27.21.
Southwest Airlines rose 0.4% to $58.81 and Hawaiian Airlines’ parent, Hawaiian Holdings, fell 2.5% to $39 afU.S. ter Southwest said it plans to start flying to Hawaii. It will start selling tickets for those flights in 2018.
Juniper Networks slid 5.2% to $25.47 after the maker of computer network equipment said its thirdquarter results will be weaker than it expected.
Benchmark U.S. crude oil fell 70 cents, or 1.4%, to $50.60 a barrel. Brent crude, used to price international oils, fell 69 cents, or 1.2%, to $56.25 a barrel. That weighed on energy company stocks.
Wholesale gasoline fell 3 cents to $1.58 a gallon. Heating oil fell 2 cents to $1.77 a gallon. Natural gas jumped 10 cents, or 3.5%, to $2.99 per 1,000 cubic feet.
Bond prices rose. The yield on the 10-year Treasury note fell to 2.32% from 2.35%.
Gold rose $7.60 to $1,296.50 an ounce. Silver rose 13 cents to $17.27 an ounce. Copper rose 2 cents to $3.12 a pound.
The dollar fell to 112.22 yen from 112.42 yen. The euro fell to $1.1836 from $1.1855.