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Stocks Lower As Target’s Slide Hits Discount Retailers | Stock News & Stock Market Analysis

Stocks remained broadly lower Wednesday afternoon, while new woes for Target (TGT) contributed to some weakness in the retail sector.

XAutoplay: On | OffThe Nasdaq composite and S&P 500 fell 0.3%, while the Dow Jones industrial average dropped 0.4%. Indexes, however, pared losses after hitting session lows in the initial minutes of trading. The main indexes have had a tendency to close high in their daily price ranges in the past few weeks.

Dow component General Electric (GE) rose nearly 2% as it struggles to recover from two days of severe selling that followed the company’s restructuring blueprint. In a more noteworthy move, JPMorgan Chase (JPM) rose as it found support at the 50-day moving average.

The small-cap Russell 2000 was off 0.2%. The index remains below the 50-day moving average.

Volume was tracking higher on the Nasdaq and lower on the NYSE compared with the same time Tuesday. Breadth was weak, with losers over winners by a 3-2 ratio on the NYSE and by 9-to-7 on the Nasdaq.

Discount retailers were the worst-performing industry group after Target gapped down more than 8% in huge volume, falling below the long-term 200-day moving average. The company beat quarterly expectations but warned of a “highly competitive” holiday quarter.

Apparel, auto and mail-order retailers were higher, however.

Semiconductor, chemical, trucking, building and energy industry groups were among the weakest in today’s trading.

Kulicke & Soffa (KLIC) tumbled nearly 9% in heavy volume, trimming much of Tuesday’s 20% post-earnings gap-up. The semiconductor equipment supplier remains extended from a 23.10 buy point of a breakout Nov. 6.

Investment firm Blackstone Group (BX) fell nearly 2% but trimmed an earlier loss of more than 5%. The stock, seeing some of the highest relative volume today, has already triggered the 7%-8% sell rule after a breakout from a 33.93 buy point on Oct. 19 failed.

RELATED:

Target May Get Squeezed By Amazon, Wal-Mart; Q4 Profit View Weak

 

 

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