Markets Right Now: Banks, retailers lead US stocks lower

NEW YORK – The latest on developments in financial markets (All times local):

4:00 p.m.

Banks are leading major U.S. stock indexes mostly lower as bond yields slide.

Wells Fargo slumped 1.6 per cent Thursday and Bank of America gave back 1.2 per cent.

Department stores and mall operators took steep losses after Kohl’s and Macy’s reported weak holiday-season results and cut their profit forecasts. Kohl’s plunged 19 per cent and Macy’s lost 14 per cent.

The Dow Jones industrial average fell 42 points, or 0.2 per cent, to close at 19,899. It had been down as much as 131 points earlier.

The Standard & Poor’s 500 index lost 1 point, or 0.1 per cent, to 2,269. The Nasdaq composite edged up 10 points, or 0.2 per cent, to 5,487.

Bond prices rose sharply. The yield on the 10-year Treasury note fell to 2.36 per cent.

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11:45 a.m.

Stocks are taking a downward turn in midday trading, led by steep declines in banks as interest rates fall.

Wells Fargo slumped 2.6 per cent Thursday and Bank of America gave back 2.3 per cent.

Banks fell the most in the Standard & Poor’s 500 index as bond yields moved lower. Lower interest rates make it harder for banks to make money from lending.

Several retailers were also taking sharp losses. Kohl’s plunged 20 per cent and Macy’s dropped 14 per cent. Both reported weak holiday sales and cut their profit forecasts.

The Dow Jones industrial average fell 115 points, or 0.6 per cent, to 19,817.

The Standard & Poor’s 500 index lost 9 points, or 0.4 per cent, to 2,261. The Nasdaq composite declined 9 points, or 0.2 per cent, to 5,468.

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9:35 a.m.

Stocks are opening mostly lower on Wall Street after several retailers reported weak holiday sales and cut their profit forecasts.

Kohl’s plunged 18 per cent in early trading Thursday, and Macy’s dropped 14 per cent. Both reported weak sales during the holiday season. Macy’s said it would cut 10,000 jobs.

The Dow Jones industrial average gave up 21 points, or 0.1 per cent, to 19,922.

The Standard & Poor’s 500 gained fell 2 points, or 0.1 per cent, to 2,268. The Nasdaq composite edged up 7 points, or 0.2 per cent, to 5,484.