U.S. stocks fell Thursday as big department store chains and airlines weighed on major indexes and investors worried about the economic effects of what is now the second-longest partial government shutdown in history.
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The shutdown entered its 20th day and an increasing number of reports of cash-flow problems for federal workers put investors on edge.
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Department store shares tumbled Thursday after Macy’s turned in disappointing same-store sales during the critical holiday shopping season.
Macy’s reported a paltry 1.1 percent gain in same-store sales and online sales during the November-December period.
Kohl’s shares also tumbled as the company turned in a weak rise in same-store sales during the critical holiday shopping season.
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Airline shares dropped after American Airlines cut its guidance for earnings per share in the current fiscal year. That hit shares of rival carriers like JetBlue and Southwest Airlines.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| M | MACY’S INC. | 25.72 | -6.00 | -18.92% |
| KSS | KOHL’S CORP. | 64.37 | -5.53 | -7.91% |
| AAL | AMERICAN AIRLINES GROUP INC. | 30.42 | -3.00 | -8.98% |
| JBL | JABIL CIRCUIT | 24.32 | +0.28 | +1.14% |
In Asian markets on Thursday, China’s Shanghai Composite fell 0.4 percent.
Hong Kong’s Hang Seng gained for a fifth day, adding 0.2 percent.
Japan’s Nikkei ended the day down 1.3 percent.
Checking European trading, London’s FTSE was lower by 0.3 percent, Germany’s DAX was down 0.4 percent and France’s CAC fell 0.8 percent.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 23829.49 | -49.63 | -0.21% |
| SP500 | S&P 500 | 2578.1 | -6.86 | -0.27% |
| I:COMP | NASDAQ COMPOSITE INDEX | 6939.9257 | -17.15 | -0.25% |
The recent rally in stocks has been fueled by optimism over trade talks between the U.S. and China.
Talks between the trade delegations got underway on Monday and were extended to an unexpected third day on Wednesday, boosting optimism that a deal could be reached.
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A member of the U.S. trade delegation called this week’s trade talks in China “a good few days.”
The positive close Wednesday marked the longest winning streak in four months for the S&P 500 and two months for the Dow Jones Industrial Average.
