Retail Industry Remains a Factor in Lower U.S. Market Indexes

U.S. market indexes closed lower Friday as the retail industry continued to be a main factor affecting stock valuations. The Dow Jones Industrial Average was down -185.18 points or -1.05 percent to 17,535.32. The S&P 500 was down -17.50 points or -0.85 percent to 2,046.61. The Nasdaq Composite was down -19.66 points or -0.42 percent to 4,717.68.

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Source: DJIA, S&P 500 and Nasdaq Composite. Google Finance.

For the week the Dow Jones Industrial Average was down -1.15 percent. The S&P 500 was down -0.51 percent and the Nasdaq Composite was down -0.39 percent.

Friday’s Factors and Events

Earnings results from department stores Nordstrom and JCPenney weighed on market valuations Friday. Nordstrom reported earnings Thursday after the closing bell with results that missed estimates for both revenue and earnings. The company’s revenue was $3.25 billion, missing estimates by $30 million and increasing 0.9 percent from the comparable quarter. The company’s earnings per share missed estimates by $0.20 at $0.26. JCPenney reported results on Friday with revenue that missed expectations by $110 million at $2.81 billion, a decrease of -1.7 percent from the comparable quarter. Earnings per share were just above analysts’ expectations yet still negative for the quarter at -$0.32. Other retail stocks mostly lower for the week included Kohl’s, Disney, Macy’s and Staples.

The Commerce Department also released its retail sales report on Friday which was higher than expectations but still showed mixed results. Friday’s retail sales report showed an increase of 1.3 percent versus consensus of 0.9 percent. The day’s report showed strength in consumer spending however most of that spending was focused in the automotive industry. In April auto sales increased 3.2 percent, up from a decrease of -3.2 percent in March. Department store sales were flat at 0 percent, down from an increase of 0.3 percent in March.

In the Dow Jones Industrial Average for the day, losses were led by Wal-Mart and Caterpillar. Meanwhile, Intel, Pfizer and Apple reported gains. In the broader market, losses were led by industrials and energy.

In the technology sector the Nasdaq Composite was down -19.66 points or -0.42 percent to 4,717.68. The Nasdaq 100 was down -16.28 points or -0.37 percent to close at 4,326.53. In the Nasdaq 100 losses were led by Western Digital and Liberty Interactive.

In commodities, gold traded higher as evidenced by the SPDR Gold Trust which reported a gain of 0.54 points or 0.45 percent. The dollar was higher for the day as the U.S. Dollar Index was up 0.46 points or 0.49 percent to 94.63.

Small-Cap Stocks

In small-caps, the Russell 2000 was down -6.16 points or -0.56 percent to 1,102.44. The S&P 600 closed at 677.30 for a loss of -4.89 points or -0.72 percent. The Dow Jones Small-Cap Growth TSM Index closed at 6747.52 for a loss of -41.61 or -0.61 percent. The Dow Jones Small-Cap Value TSM closed at 8,056.38 for a loss of -72.21 points or -0.89 percent.

Other Notable Indexes

Other notable index closes included the S&P 400 Mid-Cap Index which closed at 1,440.60 for a loss of -13.18 points or -0.91 percent; the Russell 3000 which closed at 1,203.53 for a loss of -9.87 points or -0.81 percent; and the Dow Jones U.S. Select Dividend Index which closed at 584.50 for a loss of -5.40 points or -0.92 percent.