US shares sink after retailers show weakness

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The Dow Jones Industrial Average fell 85,63 points (0,68 percent) to 12 519,84 at 1421 GMT.
The broader S&P 500 dropped 9,22 points (0,69 percent) to 1 334,38, while the tech-heavy Nasdaq Composite shed 16,87 points (0,60 percent) at 2 806,44.
“Disappointing earnings guidance from Gap that was blamed on higher-than-expected cost inflation, an acknowledgment from the Bundesbank that Germany’s economy is apt to slow from its hot first-quarter pace, and lingering worries about the pace of global economic growth are acting as limiting factors,” said Patrick O’Hare at Briefing.com.
There were no major economic releases on the calendar to offer direction to sentiment. Gap shares tumbled 17,2 percent to US$19,28.
The struggling chain reported a 23 percent fall in first-quarter profit from a year ago, and warned that costing pressures were higher than expected and would “more than” outweigh retail price increases in the second half of the year.
Rival mall-based retailer Aeropostale, which also posted a lower quarterly profit, sank 18,9 percent to US$17,31.
Shares in bookseller Barnes & Noble, approached by Liberty Media with a cash buyout bid at US$17 a share, leaped 28,3 percent to US$18,11. The takeover offer values the beleagured retailer at around US$1 billion.
Last Thursday the equities markets proved resilient to a batch of disappointing economic data. The Dow rose 0,36 percent, the S&P 500 edged up 0,22 percent and the Nasdaq climbed 0,30 percent.
The bond market rose slightly. The yield on the 10-year Treasury note slipped to 3,16 percent from 3,17 percent late on Thursday, while that on the 30-year bond was unchanged at 4,30 percent.
Bond prices and yields move in opposite directions. – AFP.