Sales drops at Macy's and Kohl's sparked fears that consumers aren't spending enough to drive strong economic growth. Fred Katayama reports.
Wall Street lost ground Thursday, pressured by a drop in retail and bank shares. Sales drops at Macy's and Kohl's sparked a selloff in shares of department stores. Shares of Nordstrom fell after the bell. It, too, reported same-store sales that fell more than analysts expected. Ken Kamen of Mercadien Asset Management: SOUNDBITE: KEN KAMEN, PRESIDENT, MERCADIEN ASSET MANAGEMENT, (ENGLISH) SAYING: "The earnings today are from traditional retailers. Certainly the story of the day is Macy's. You now, it's down because their traffic is down." Not picture perfect. Snap shares plunged. Revenue and user growth slowed down at the owner of Snapchat. It was Snap's first report as a public company. Straight Path shares went straight down after investors realized there would be no bidding war. Verizon beat out AT&T to buy the wireless spectrum holder for $3.1 billion. The day's top performer on the Dow and S&P: Merck. Regulators cleared the drugmaker's lung cancer treatment. In economics news, the number of Americans filing for jobless benefits unexpectedly fell last week. Producer prices rebounded sharply in April. That points to a tightening labor market. In Europe, telecom and utilities stocks pulled down shares. But the FTSE 100 eked out a gain. "Some of what's pressuring the market is the market's been waiting to be pressured. Everyone thinks as been on this rise eventually, some shoe is going to drop. And I caution people not to let things out of Washington per se dictate their investment strategy."