Stocks sag on retail woes

Macy’s falls 14%, its largest one-day drop in 7 years.

NEW YORK — Stock indexes ended lower Wednesday after a day of wavering between small gains and losses. A weak report from Macy’s pushed retail stocks lower, and energy stocks retreated as the price of oil fell.

Macy’s plunged 14 percent, its largest one-day drop in seven years. Other retailers slumped as investors took its results as a warning about third-quarter sales and the upcoming holiday shopping season.

October’s big rally is fading into the distance, but most of the market’s recent losses have been small. Stocks have lost ground for five of the last six trading days, leaving the market with a meager gain for the year to date.

The Dow Jones industrial average lost 55.99 points, or 0.3 percent, to 17,702.22. The Standard & Poor’s 500 index fell 6.72 points, or 0.3 percent, to 2,075. The Nasdaq composite gave up 16.22 points, or 0.3 percent, to 5,067.02.

Macy’s third-quarter sales were lower than analysts expected, prompting the owner of the Bloomingdale’s chain to cut its profit forecast for the year. Macy’s also said it will close more stores. Its shares sank $6.58, or 14 percent, to $40.44.

Citi Investment Research analyst Paul Lejuez said fewer people bought winter clothes like boots and coats in the third quarter because the weather was warm. That meant they were less likely to go shopping for clothes at all, so inventories built up and discounts increased. That’s a troubling sign around three weeks before Black Friday.

“That’s bad for anybody that competes against Macy’s,” he said.

Investors dumped other retailers’ shares after the trouble at Macy’s.

Kohl’s fell $2.44, or 5.4 percent, to $43.16 and Nordstrom dropped $2.41, or 3.7 percent, to $62.32. Urban Outfitters fell $2.12, or 7.4 percent, to $26.59. PVH Corp., the company behind the Calvin Klein and Tommy Hilfiger brands, lost $4.67, or 5 percent, to $88.26.

In energy trading, the price of oil dropped 3 percent after a report showed a big buildup in U.S. crude stockpiles. The American Petroleum Institute said supplies grew by 6.3 million barrels, far more than analysts expected, according to Price Futures Group analyst Phil Flynn.

U.S. crude slid $1.28 to $42.93 a barrel in New York and Brent crude, which is used to price international oils, lost $1.63 to $45.81 a barrel in London.