NEW YORK (MarketWatch) -- Retail stocks fell on Tuesday after August U.S. housing starts fell more than expected and the International Monetary Fund cut its economic forecast, raising some worries about consumer spending heading into the industry's key critical holiday season. J.C. Penney Co. JCP -0.77% fell 1%. The mid-priced department store operator said in a regulatory filing late Monday that it agreed to let Vornado Realty Trust to have the right to increase its stake in the company to 15.4% from 9.9%. Penney's rival, Kohl's Corp. KSS -1.33% dropped 1.4%. AutoZone Inc. AZO -1.47% shares fell 1.3% even after the auto-parts retailer reported better-than-expected quarterly results. Among the gainers, Polo Ralph Lauren Corp. RL +0.47% inched up 0.4% after Cowen & Co. upgraded the stock to outperform from neutral. Victoria's Secret parent Limited Brands Inc. LTD +0.73% rose 1.4%.
