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Retailer stocks take a broad beating, led by tumbles in Macy’s and Nordstrom shares

Shares of retailers are trading broadly, and in many cases sharply lower, as disappointing results from Macy’s Inc. and growing concerns of an impending recessionary cycle weigh on the sector. The SPDR S&P Retail ETF dropped 3.9% in morning trading, putting it on track for an 8-month closing low, with 84 of 87 equity components trading lower. The retail ETF’s (XRT) biggest loser was Macy’s stock, which plummeted 16% to the lowest levels seen since February 2010, after the department-store chain missed second-quarter earnings expectations and lowered its outlook. Among the XRT’s other biggest losers were shares of Nordstrom Inc. , which slumped 11%, and Kohl’s Corp. , which tumbled 10%. Elsewhere, shares of Walmart Inc. slipped 0.3%, Target Corp. gave up 2.6% and Gap Inc. dropped 6.9%. The best performer was Monro Inc.’s stock , which rose 1.3%. The retail sector’s selloff comes as the Dow Jones Industrial Average falls 583 points, as an inverted Treasury yield curve sparks fear that a recession may be looming. Separately, government data on July retail sales will be released on Thursday, before the open. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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