US stocks fell on Thursday, led by the consumer-discretionary sector as earnings guidance and results from retailers Kohl's and Urban Outfitters disappointed. In addition, a forecast from Cisco Systems failed to improve investor sentiment toward technology.
The Dow Jones Industrial Average fell 113.96 points (1.05%) to 10,782.95, its sixth drop in the past eight sessions. Cisco was the measure's worst performer with a drop of $1.21 (4.5%) to $25.53. The networking giant reported a 63% profit jump but its forecast for fiscal fourth-quarter sales growth merely met analysts' estimates.
The Dow's other top decliners included American Express, which fell $1.29 (2.9%) to $42.81, Intel, which slipped 59 cents (2.6%) to $22.50, and General Electric, which declined 39 cents (2.1%) to $18.05. Just one Dow component managed to end the session in the black: Alcoa, which edged up 34 cents (2.7%) to $12.80.
The Nasdaq Composite fell 30.66 (1.26%) to 2,394.36. The Standard & Poor's 500 index slumped 14.23 (1.21%) to 1,157.44. The consumer-discretionary sector led the measure's declines as Kohl's and Urban Outfitters weighed.
Kohl's fell $3.34 (5.8%) to $53.81, after its second-quarter and full-year profit outlooks fell short of Wall Street expectations. Urban Outfitters tumbled $2.63 (6.7%) to $36.78, as its expenses rose more than some analysts had expected.
Among the other retail stocks that fell, Abercrombie & Fitch dropped $2.20 (5.1%) to $41.14, Macy's declined $1.22 (4.9%) to $23.48, and JC Penney slipped $1.46 (4.9%) to $28.17.
Whole Foods Market edged up $2.25 (5.6%) to $42.50. The natural-foods supermarket's fiscal second-quarter earnings soared 91% on solid growth in same-store sales as the natural-foods supermarket's chief said the company has "successfully emerged" from the recession.
Communications company Sprint Nextel said it will sell a new prepaid wireless service through Wal-Mart Stores. Sprint Nextel jumped 31 cents (7.5%) to $4.46, but Wal-Mart edged down 8 cents (0.2%) to $52.40.
Penn West Energy Trust rose 70 cents (3.7%) to $19.75. The company is partnering with a Chinese state-owned company to develop its oil-sands assets in northern Alberta, marking China's latest move into the oil-rich Canadian province. Penn West, one of North America's largest conventional oil and natural gas producers, said it and a unit of China Investment Corp. will form a joint venture to develop the assets, which are in the Peace River area.
Tim Hortons posted a nearly 19% increase in first-quarter earnings on same-store sales improvements in both Canada and the US, and announced plans for a private bond offering in the second quarter. The stock climbed $1.06 (3.2%) to $34.70.