Major Averages Close In The Red Following Disappointing Retail Sales

(RTTNews) - Stocks moved mostly lower over the course of the trading day on Wednesday following the release of disappointing U.S. retail sales data. With the losses on the day, the Dow and the S&P 500 pulled back further off the nearly two-month closing highs set on Monday.

The weakness on Wall Street was partly due to the release of a Commerce Department report showing that retail sales rose less than expected in September.

News out of Wal-Mart (WMT) also weighed on the markets, as the retail giant lowered its revenue outlook for fiscal 2016, citing the impact of a stronger U.S. dollar.

Retail stocks saw significant weakness on the heels of disappointing sales data and the news from Wal-Mart. The Dow Jones Retail Index tumbled by 1.9 percent, pulling back further off the nearly two-month closing high set on Monday.

Considerable weakness was also visible among housing stocks, as reflected by the 1.8 percent loss posted by the Philadelphia Housing Sector Index. KB Home (KBH) and Hovnanian (HOV) turned in two of the sector's worst performances.

Financial stocks also came under pressure on the day, with JP Morgan helping to lead the sector lower. The Dow Jones Banks Index and the NYSE Arca Broker/Dealer Index fell by 1.5 percent and 1.3 percent, respectively.

On the other hand, gold stocks moved sharply higher on the day, driving the NYSE Arca Gold Bugs Index up by 7.8 percent. The strength in the sector came as gold for December delivery climbed $14.40 to $1,179.80 an ounce.

Significant strength also emerged among semiconductor stocks, resulting in a 3.8 percent jump by the Philadelphia Semiconductor Index. SanDisk (SNDK) posted a standout gain following a Bloomberg report the company has hired a bank to explore a potential sale.

The major averages moved roughly sideways going into the close, stuck in negative territory. The Dow slid 157.14 points or 0.9 percent to 16,924.75, the Nasdaq dipped 13.76 points or 0.3 percent to 4,782.85 and the S&P 500 fell 9.45 points or 0.5 percent to 1,994.24.