Dow Slumps After Results From Big Retailers

Markets erased some of Monday's gains
By Newser Editors and Wire Services
Posted May 19, 2020 4:32 PM CDT

(Newser) – A late-day slide left stocks broadly lower on Wall Street Tuesday, as the market gave back some of the ground it gained in a big rally a day earlier. Losses in banks, health care stocks, and household goods companies accounted for a big portion of the selling, the AP reports. The drop erased early strength in technology stocks and companies that rely on consumer spending. Bond yields mostly fell and the price of gold rose, signs that investors were feeling cautious. The S&P 500 lost 30.97 points, or 1%, to 2,922.94. The Dow Jones Industrial Average fell 390.51 points, or 1.6%, to 24,206.86. The Nasdaq composite dropped 49.72 points, or 0.5%, to 9,185.10.

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Quarterly results from two big retailers Tuesday underscored how companies that have been able to remain open or effectively amplify their e-commerce business have been able to fare far better than those that have had to temporarily close doors. Walmart reported a 74% surge in fiscal first-quarter sales as people stocked up on crucial supplies amid stay-at-home orders. Its earnings fell as it spent $900 million in additional compensation for workers, but still topped Wall Street's forecasts. Its shares were down 1.9% after shedding early gains. Meanwhile, Kohl’s, whose stores have been closed during the outbreak, fell 7% after reporting that it swung to a $541 million quarterly loss as its revenue sank more than 40%.

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