Russell continues to bleed
The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) are continuing to careen for the first session in four trading days after news of weaker-than-expected holiday retail sales and a bleak report on housing prices.
At 1:10 p.m. ET, the small-cap index had shed 0.36 points, or 0.05%, to 794.03. The Dow was down 17.07 points, or 0.13%, to 13,532.23.
As the holiday shopping season draws to a close, the latest retail sales suggest the housing debacle and continued high oil prices are claiming the consumer and roiling retailers. News out from Target Corporation (NYSE: TGT) and MasterCard Incorporated (NYSE: MA) in particular are weighing on the indices today.
Discount retailer Target warned on Tuesday that its sales may have declined in the month of December since the Thanksgiving holiday and lowered its same-store sales outlook for the month to a 1% decrease from a 1% increase. This compares with the retailers previous forecast of a gain of 3% to 5%.
MasterCard added to the glum retail report after it reported that holiday spending, which includes credit, cash and checks, only rose 2.4% due to softer sales of women's apparel.
The International Council of Shopping Centers-UBS added a broader gauge when it reported its Retail Chain Store Sales Index rose by 2.8% for the week of Dec. 22 from the previous week. The ICSC, however, warned that retail industry sales might not meet its original guidance. Actual December sales figures will not be disclosed until mid-January.
In economic news, home prices in 20 large U.S. cities slipped a greater-than-forecast 6.1% compared with a year ago, according to a report by Stand & Poor/Case-Shiller. The index has decreased every month this year and October experienced the largest decline since its initiation in 2001.The report said only three areas — Charlotte, N.C., Portland, Ore. and Seattle, Wash. — showed positive annual growth in home prices.
Separately, the price of a barrel of crude oil rose sharply — $1.44 — to $95.57 on worries that shipments from Iraq could be disrupted after the Turkish military attacked Kurdish rebel bases in northern Iraq.
Biggest percentage gainers:
• China Technology Development Group Corp. (CTDC) up 51.7% to $8.80.
• Alexco Resource Corporation (AXU) up 24.2% to $5.44.
• Ultralife Batteries Inc. (ULBI) up 17.5% to $19.68 on news that the battery maker got an order worth approximately $40 million from a U.S. defense contractor to supply advanced communications systems.
Biggest percentage losers:
• Rurban Financial Corp. (RBNF) down 12.7% to $10.61.
• California First National Bancorp (CFNB) down 12.3% to $91.28.
• Carrollton Bancorp (CRRB) down 11.5% to $11.50.
