Mar­kets fall on me­dia, re­tail losses

JPMor­gan Chase and Cit­i­group start third-quar­ter re­ports, while J. Jill plunges.

The Denver Post - - BUSINESS - By Mar­ley Jay The As­so­ci­ated Press

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 com­pany’s stock lost more than half its value.

AT&T had its worst one-day loss since 2008 af­ter it said it lost more satel­lite and cable TV sub­scribers in the third quar­ter. Other cable and satel­lite TV com­pa­nies also stum­bled. In­dus­trial com­pa­nies and house­hold goods mak­ers fin­ished higher.

JPMor­gan Chase and Cit­i­group did bet­ter than an­a­lysts ex­pected in the third quar­ter, but their stocks fell and so did shares of other banks. They’ve made big gains over the last month.

CFRA In­vest­ment Strate­gist Lind­sey Bell said the com­pa­nies re­ported good re­sults from their con­sumer bank­ing busi­nesses, but other di­vi­sions didn’t do as well.

“The bar was set kind of high,” she said. “Given the run that th­ese stocks have had into th­ese earn­ings re­ports, they’re go­ing to need to see th­ese other busi­nesses pick up steam.”

The Stan­dard & Poor’s 500 in­dex fell 4.31 points, or 0.2 per­cent, to 2,550.93. The Dow Jones in­dus­trial av­er­age lost 31.88 points, or 0.1 per­cent, to 22,841.01. The Nas­daq com­pos­ite dipped 12.04 points, or 0.2 per­cent, to 6,591.51. Those three in­dexes closed at record highs Wed­nes­day. The Russell 2000 in­dex of smaller-com­pany stocks slumped 1.76 points, or 0.1 per­cent, to 1,505.16.

AT&T said it lost about 90,000 DirecTV video sub­scribers in the U.S. in the third quar­ter. AT&T stock fell $2.33, or 6.1 per­cent, to $35.86.

Ver­i­zon Com­mu­ni­ca­tions shed 51 cents, or 1 per­cent, to $48.35 and cable provider Com­cast fell $1.47, or 3.8 per­cent, to $35.95. Dish Net­work slid $2.62, or 5.1 per­cent, to $49.03. Cable chan­nel op­er­a­tor Dis­cov­ery Com­mu­ni­ca­tions lost 72 cents, or 3.6 per­cent, to $19.28.

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.

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.

Bench­mark U.S. crude oil lost 70 cents, or 1.4 per­cent, to $50.60 a bar­rel in New York. Brent crude, used to price in­ter­na­tional oils, fell 69 cents, or 1.2 per­cent, to $56.25 a bar­rel in Lon­don. That weighed on en­ergy com­pa­nies.

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