Stocks drop on mixed economic news; Wal-Mart falls
Source: AP-EXCITE
By KEN SWEET
NEW YORK (AP) — Investors sold off riskier stocks Thursday after disappointing earnings from Wal-Mart and mixed news about the U.S. economy. Small stocks fell the most.
KEEPING SCORE: The Dow Jones industrial average was down 208 points, or 1.3 percent, to 16,405 as of 1:51 p.m. Eastern time. It was second day of sharp declines for the blue-chip index. On Wednesday, the Dow's 101-point drop ended a five-day winning streak. The Standard & Poor's 500 index fell 23 points, or 1.2 percent, to 1,865. The Nasdaq composite slid 48 points, or 1.2 percent, to 4,051.
SMALL STOCKS, BIG WORRIES: The Russell 2000, which is made up primarily of smaller, more risky companies, declined the most among major indexes. Small-cap stocks are considered riskier than large-caps, in part, because the companies often have weaker balance sheets. The Russell 2000 was down 1.2 percent Thursday afternoon, and has dropped 10 percent from a recent high on March 4. A decline that steep is a "correction" in Wall Street parlance.
RETAIL ROUT: Wal-Mart Stores fell $1.92, or 2.4 percent, to $76.82. The company reported lower earnings in its most recent quarter and warned that things don't look much better in the current period. The company, like many other retailers, blamed harsh winter weather. Department store operator Kohl's also fell after announcing a drop in first-quarter earnings. Its comparable-store sales fell 3.4 percent. Analysts were looking for a slight uptick.
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Read more: http://apnews.excite.com/article/20140515/wall_street-de30c81575.html
FILE - In this May 11, 2007 file photo, a Wall Street sign is seen at an entrance to the New York Stock Exchange. Global stock markets were mostly lower Thursday May 15, 2014 ahead of quarterly European growth figures that investors hope will show a strengthening economic recovery. (AP Photo/Richard Drew, file)
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The Einstein's in charge of our economy still havent figured out that everyone needs to share in the supposed recovery they keep touting.
