US STOCKS-Wall St drops as Disney, Macy's weigh on consumer stocks
* Disney falls after rare earnings miss
* Macy's weak report weighs on other retailers
* Office Depot , Staples slump after calling off merger
* Indexes down: Dow 0.48 pct, S&P 0.35 pct, Nasdaq 0.41 pct
(Updates to open)
By Tanya Agrawal
May 11 (Reuters) - U.S. stocks fell on Wednesday as oil
prices surrendered early gains and weak results from Walt Disney
and Macy's weighed on consumer discretionary stocks.
Disney DIS.N shares were down 5.5 percent at $100.71 after
the company's results missed expectations as advertising and
subscriptions declined at ESPN.
The stock was the biggest drag on the Dow, accounting for
about 35 points of the index's 80 points fall.
Macy's M.N sank 7.8 percent to $34.14 after the department
store operator slashed its full-year sales forecasts. Macy's
weak report dragged down other department store chains with J.C.
Penney JCP.N , Kohl's KSS.N , Nordstrom (NYSE: JWN ) JWN.N and Dillard's
DDS.N falling between 2 to 6 percent.
All the 10 major S&P sectors were lower, with the consumer
discretionary index's .SPLRCD 1.38 percent fall leading the
" ... We see a little bit of profit taking from yesterday's
rally while Disney's earnings miss is certainly a factor," said
Peter Cardillo, chief market economist at First Standard
Financial in New York.
At 9:44 a.m. ET (1344 GMT) the Dow Jones industrial average
.DJI was down 86.05 points, or 0.48 percent, at 17,842.3, the
S&P 500 .SPX was down 7.25 points, or 0.35 percent, at
2,077.14 and the Nasdaq Composite .IXIC was down 14.98 points,
or 0.31 percent, at 4,794.90.
Oil prices were slightly lower, surrendering early gains as
worries about supply disruptions resurfaced after Shell (LON: RDSa )
announced the closure of a key Nigerian pipeline. O/R
On Tuesday, the S&P 500 and Dow Jones notched their biggest
daily percentage gain since March 11 and the Nasdaq its biggest
since April 13, helped by a jump in oil and a rally in Amazon
Tuesday's gains appeared to breathe new life into a
two-month rally that had petered out in mid-April and left the
S&P 500 with an increase of just about 2 percent for 2016.
Still, traders are struggling to find new catalysts to
propel the market back towards record highs due to underwhelming
first-quarter earnings and mixed economic data that provided
little clarity on the path of Federal Reserve's rate-hike path.
First-quarter earnings for S&P 500 companies have mostly
beaten analysts' expectations, but are still estimated to have
fallen 5.4 percent from a year ago, according to Thomson Reuters
"I think we're going to continue to mull around till we get
signs of solid economic activity," said Cardillo.
Fossil FOSL.O slumped 30.9 percent to $27.83 and were set
to open at a six-and-a-half year low after the watch retailer
cut its 2016 forecast.
Office Depot ODP.O fell 36.1 percent to $3.89 after
terminating its planned merger with Staples SPLS.O . Staples
was down 17.1 percent at $8.58.
Declining issues outnumbered advancing ones on the NYSE by
1,538 to 1,110. On the Nasdaq, 1,431 issues fell and 825
The S&P 500 index showed 29 new 52-week highs and five new
lows, while the Nasdaq recorded 24 new highs and 13 new lows.
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