Wal-Mart Stores, Ross Stores and Limited Brands, the owner of Victoria’s Secret, all fell after issuing forecasts that disappointed financial analysts. Wal-Mart dropped $2.59, or 3.6 percent, to $68.72.
The Dow Jones industrial average closed at 12,542.38, down 28.57 points. The Standard Poor’s 500-stock index dropped 2.16 points to 1,353.33, and the Nasdaq composite index finished 9.87 points lower at 2,836.94.
Stocks have fallen steadily since voters returned President Obama and a divided Congress to power. The Dow has lost 5 percent since Election Day, Nov. 6.
Investors are worried that government leaders may not reach a deal before tax increases and government spending cuts take effect on Jan. 1. The impact would total more than $600 billion for 2013 and could send the country back into recession.
E. William Stone, chief investment strategist at the PNC Asset Management Group in Philadelphia, said the bargaining in Washington was likely to drag on until next year, weighing on stocks. “It’s hard to see the market getting a whole ton of traction until that gets settled,” he said.
President Obama will meet with Congressional leaders on Friday to talk about the budget, but he appeared to suggest on Wednesday that he would insist on an increase in tax rates for the wealthy.
T. Dale, a portfolio manager at Security Ballew Wealth Management in Jackson, Miss., said stocks were more likely to fall than to rise, partly because of the budget impasse and slowing global economic growth.
Hurricane Sandy drove the number of people seeking unemployment benefits up to 439,000 last week, the Labor Department reported. Applications for benefits rose 78,000, with a large number of them filed in storm-damaged states.
The European Union’s statistics agency confirmed that the euro zone, the group of 17 countries that use the euro currency, was in recession. The economy in the region shrank 0.1 percent in the third quarter from the previous three-month period.
Among the retailers disappointing Wall Street with lower earnings forecasts was Ross Stores, whose stores include Ross Dress for Less. Its shares fell 69 cents, or 1.3 percent, to $54.44. Limited Brands dropped $1.10, or 2.4 percent, to $45.50.
Interest rates were steady. The Treasury’s benchmark 10-year note fell 2/32, to 100 9/32, and the yield was unchanged at 1.59 percent.
Among stocks making big moves, NetApp, a data storage business, jumped $3.08, or 11.4 percent, to $30.20 after the company reported higher earnings than analysts had expected.
Viacom, the owner of Nickelodeon, MTV and the Paramount movie and television studio, rose $1.24, or 2.6 percent, to $49.23. The media conglomerate did better than investors had expected because of lower costs and higher fees from cable and satellite companies for carrying its cable networks.
PetSmart, a specialty pet retailer, rose $2.63, or 4.1 percent, to $67.48 after raising its full-year outlook.
Target rose $1.06, or 1.7 percent, to $62.44 after reporting that its profit increased more than analysts had forecast. The company also issued a strong outlook heading into the holiday season.
Dollar Tree, a discount retailer that sells items for $1 or less, gained $1.94, or 5.1 percent, to $39.70 after the company said its net income rose 49 percent in the third quarter.
Apple’s market value fell below $500 billion for the first time since May, as its shares dropped $11.26, or 2.1 percent, to $525.62. The company’s market value rose as high as $658 billion on Sept. 19, according to FactSet, a research firm.
Article source: http://www.nytimes.com/2012/11/16/business/daily-stock-market-activity.html?partner=rss&emc=rss