Retailers lead stocks to modest losses

Retailers led a modest slide in U.S. stocks Tuesday as the market eased back for the second day in a row, pulling it further below record highs set late last week.

Macy’s sank more than 8 percent after warning that its profit margins could be weaker than the company had forecast earlier. Several other retailers, including Conn’s and Casey’s General Stores, also slumped after issuing disappointing quarterly results or outlooks.

Banks and other financial companies also posted losses as the yield on the 10-year Treasury slipped to 2.14 percent, the lowest level since November. Lower bond yields mean lower interest rates on loans, which hurt banks’ profits.

Energy stocks notched the biggest gain as crude oil prices rebounded.

The Standard & Poor’s 500 index fell 6.77 points, or 0.3 percent, to 2,429.33. The Dow Jones industrial average slid 47.81 points, or 0.2 percent, to 21,136.23. The Nasdaq composite index lost 20.63 points, or 0.3 percent, to 6,275.06.

Small-company stocks fared better than the rest of the market. The Russell 2000 gave up 1.55 points, or 0.1 percent, to 1,394.90.

The Labor Department provided some encouragement early on, reporting that job openings rose 4.5 percent in April to more than 6 million, the most since December 2000, when the government began tracking the data. Still, hiring fell 4.8 percent.

On Friday, the government reported that employers added just 138,000 jobs last month, about onethird below last year’s average monthly gain.

Investors found little encouragement in the latest crop of outlooks from several big retailers Tuesday.

In a presentation to investors, Macy’s Chief Financial Officer Karen Hoguet said the company’s gross margins could fall more than Macy’s expected a couple of months ago, with the first half of the year especially weak. The company continues to grapple with too much holiday inventory and a lot of discounts on beauty products.

Macy’s was the biggest decliner in the S&P 500, losing $1.96, or 8.2 percent, to $21.90.

Other department store chains also fell. Kohl’s slid $2.19, or 5.8 percent, to $35.73. Nordstrom gave up $1.51, or 3.6 percent, to $40.14.

Not all retailers had a bad day.

G-III Apparel Group climbed 15.2 percent after the owner of Wilsons Leather and G.H. Bass stores posted better-thanexpected quarterly results. The company also raised its estimates for the year. G-III Apparel shares added $3.03 to $22.92.

In energy futures trading, crude oil prices rebounded after an early slide. Benchmark U.S. crude gained 79 cents, or 1.7 percent, to close at $48.19 a barrel in New York. Brent crude, used to price international oils, added 65 cents, or 1.3 percent, to finish at $50.12 a barrel in London.

Wholesale gasoline rose 2 cents, or 1.1 percent, to $1.55 per gallon. Heating oil added a penny to $1.47 per gallon. Natural gas gained 6 cents, or 2 percent, to $3.04 per 1,000 cubic feet.

Among metals, gold added $14.80, or 1.2 percent, to $1,297.50 per ounce. Silver rose 13 cents to $17.71 per ounce, while copper lost a penny to $2.55 per pound.

In currency trading, the dollar weakened to 109.54 yen from 110.49 yen on Monday. The euro increased to $1.1271 from $1.1255.