Weak September month retail sales dragged market averages and the retail sector stocks lower. Mining and metals and energy complex stocks dropped after the crude oil, gasoline and natural gas prices fell to a low for the year. Of the stocks in S&P 500 index, 470 declined and 28 gained.
12:50PM New York – Energy, mining and retail companies fell after the release of September retail sales data and 4% decline in crude oil price.
Market indexes in Europe and Asia closed sharply lower and in North America fell in the early hours of trading.
Weak retail sales and crude oil and commodities prices dragged market indexes lower. September retail sales fell 1.2% after declining 0.4% in August. Crude oil futures dropped 4% to $75.28 a barrel. Immediate month futures prices of Cocoa, soybeans and sugar dropped more than 4%. Wheat and corn futures fell more than 2%.
Retailers fell sharply after the release of September sales data. Wal-Mart Stores (WMT: chart) fell 4.5% or $2.45 to $52 and Costco Wholesale Corp dropped 2.7% or $1.58 to $56.83.
JC Penney Company (JCP: chart) declined 1% or 20 cents to $22.58, Macy’s, Inc (M: chart) dropped 4.1% or 44 cents to $10.06 and Target Corp (TGT: chart) slid 6.1% or $2.44 to $37.38. American Eagle Outfitters (AEO: chart) fell 6.8% or 72 cents to $9.89 and Guess?, Inc (GES: chart) dropped 11% or $2.94 to $24.00.
Restaurant stocks declined as well. P.F. Chang’s China Bistro (PFCB: chart) dropped 3.6% or 71 cents to $19.20 and the Cheesecake Factory (CAKE: chart) dropped 5.5% or 59 cents to $10.21. Brinker International (EAT: chart) fell 5.5% or 64 cents to $11.03.
Copper futures fell 7.3%, silver declined 6% but gold rose 1%.
Exxon Mobil (XOM: chart) fell 7.2% or $5.15 to $67.31, ConocoPhillips (COP: chart) declined 6.9% or $3.95 to $53.01 and Chevron Corp (CVX: chart) dropped 6% or $4.24 to $64.39.
Peabody Energy Corp (BTU: chart) plunged 12.1% or $3.71 to $26.84, Freeport-McMoran (FCX: chart) declined 13.2% or $5.41 to $35.50 and Massey Energy (MEE: chart) fell 7.7% or $1.68 to $21.14.
Of the stocks in S&P 500 index, 470 declined and 28 rose. Jones Apparel led the decliners with a plunge of 23% followed by losses in SLM Corp of 21% I Chesapeake Energy of 19.7%, in Southwestern Energy of 16%, in Noble Corp of 15%.
Hudson City Bancorp led the gainers in the index with a rise of 9.2% followed by gains in Zions Bancorp of 5.2%, in Coca-Cola Company of 5%, and M&T Bank Corp of 4.97%.
The Coca-Cola Company (KO: chart) reported third quarter revenue rise of 9% and earnings per share gain of 14% to 81 cents per share. Worldwide unit case volume increased 5% with international sales rising 7%. Of the sales rise, 3% were concentrate sales increase, 2% were price increase and product mix related. Unit case volume in Japan rose 1% but in the North America fell 2%.
JP Morgan Chase (JPM: chart) reported third quarter revenue declined 5% to $16.08 billion from a year ago and net income fell 84% to $527 million in the period. The bank took additional charge of $6.6 billion in the third quarter after taking $4.2 billion in the second quarter and $2.36 billion in the third quarter a year ago. Earnings per share declined to 11 cents from 97 cents a year ago.
Intel (INTC: chart) after the close reported third quarter revenue increase of 1% from a year ago to $10.2 billion and net income increase of 12% to of $2 billion. Earnings per share increased 17% to 35 cents from a year ago and 25% from the second quarter of this year.
Total microprocessor average selling price was lower sequentially and gross margin in the quarter was 58.9%, up from 55.4% in the second quarter.
