By Andria Cheng
Retail stocks followed the broader markets lower on Monday amid
concerns about the prospect of a trade war between the U.S. and
China, where retailers from Wal-Mart Stores Inc. to J.C. Penney Co.
make some of their goods.
The S&P Retail Index (RLX) fell 0.7% to 369.71.
During the weekend Washington imposed stiff tariffs on
Chinese-made tires, leading to China saying it would launch an
anti-dumping investigation into U.S. sales of chicken and auto
products. Economists said any trade-related dispute between the two
countries could have significant implications.
No. 1 retailer Wal-Mart (WMT), a Dow Jones Industrial Average
component, recently fell 0.65% to $50.39.
Department store operator J.C. Penney (JCP) was down 1.84%.
Among other decliners, Nordstrom Inc. (JWN) shares declined 1.23%.
Kohl's Corp. (KSS) fell 1.61%.
Electronics retailer Best Buy Co. (BBY) was recently up 0.1%
ahead of its earnings release on Tuesday. While overall consumer
electronics trends remained quite weak in the second quarter, Best
Buy likely saw a moderate rebound toward the end of the quarter as
a slightly better-than-expected back-to-school with strong relative
PC sales partially offset tough comparisons and a weak
discretionary environment, said analyst Colin McGranahan of Sanford
C. Bernstein & Co.
-Andria Cheng; 415-439-6400; AskNewswires@dowjones.com
