Me­dia, re­tail losses a drag on stocks

Pittsburgh Post-Gazette - - Business - By Mar­ley Jay

As­so­ci­ated Press

NEW YORK — U.S. 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 firm’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 in the third quar­ter. Other cable and satel­lite TV firms also stum­bled. In­dus­trial com­pa­nies and house­hold goods mak­ers fin­ished higher.

JPMor­gan Chase and Cit­i­group both did bet­ter than an­a­lysts ex­pected in the third quar­ter, but their $1.39, or 1.1 per­cent, to $129.99 and rail­road op­er­a­tor Nor­folk South­ern rose $2.20, or 1.7 per­cent, to $133.69.

Cit­i­group said its in­vest­ment bank­ing busi­ness did well in the lat­est quar­ter, while JPMor­gan Chase said its con­sumer bank­ing busi­ness im­proved com­pared to a year ago. But Cit­i­group fell $2.57, or 3.4 per­cent, to $72.37 and JPMor­gan gave up 85 cents to $95.99.

Ms. Bell, of CFRA Re­search, noted that banks have jumped and re­gional bank stocks have done es­pe­cially well over the past month, but the third quar­ter is a tricky one for many banks be­cause stock and bond mar­ket trad­ing is fairly quiet.

J. Jill stock nose­dived af­ter the re­tailer of women’s clothes, shoes and ac­ces­sories slashed its out­look for the third quar­ter. The com­pany said re­tail and di­rectto-con­sumer sales both fell short of its ex­pec­ta­tions and cut its earn­ings fore­cast in half. J. Jill stock opened at $13 a share af­ter its March IPO and on Thurs­day it plunged $5.07, or 51.1 per­cent, to $4.86.

Re­tailer Ex­press sank 53 cents, or 8.3 per­cent, to $5.88 and Chico’s FAS lost 57 cents, or 7.2 per­cent, to $7.40. Gap lost $1.21, or 4.3 per­cent, to $27.21.

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