Friday, May 12, 2017

Retailers Post Losses, Send Stocks Reeling Before Late-Day Recovery

Stocks finished lower, but well off the lows set earlier in the day, as Macy's and other retailers continue to under-perform the broader market.

The retailer reported earnings well below expectations. Kohl's, Penny's, Sears, Nordstrom and Dillards were also big losers on the day. Macy's same-stare sales plummeted 5.2% in April.

The demise of brick-and-mortar retailing is a continuing trend that shows no sign of abating as Americans turn to online retailing as their preferred buying methodology. Store closing in malls and shopping centers around the country have only accelerated as company CEOs seek ways to cut costs and salvage what remains of a buggy-whip-type industry.

Alongside retail, cable companies and network broadcasters could be next, as consumers, enraged over continued increases in television subscription services, cut the cord and elect to go completely wireless.

These trends should continue until most of North America sees malls and cable and phone lines as mere remnants of a wired, consumer-driven past.

At the close, 5/11/17:
Dow: 20,919.42, -23.69 (-0.11%)
NASDAQ: 6,115.96, -13.18 (-0.22%)
S&P 500: 2,394.44, -5.19 (-0.22%)
NYSE Composite: 11,563.60, -35.38 (-0.31%)

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