Stocks Decline On Retail Concerns/Dollar Mostly Lower

Stocks Decline On Retail Concerns/Dollar Mostly Lower

U.S. equity markets were declining on Thursday after a slew of profit warnings from retailers and after President-elect Obama's speech on the economy failed to ignite much positive sentiment.

Wal-Mart slashed its fourth-quarter earnings forecast as it reported same-store sales that missed forecasts. Retailers are likely facing the worst holiday shopping season in decades this year as the economy slows. The world's largest retailer reported its same-store sales rose 1.7% last month, far short of the expected 2.8% increase, and slashed its fourth quarter profit forecast to between $0.91 and $0.94 in the period from $1.07 previously. Wal-Mart also said it expected January sales to be flat. Meanwhile, Mr. Obama warned the U.S. recession could "linger for years" unless Congress acts to pump unprecedented sums from Washington into the U.S. economy.

"I don't believe it's too late to change course, but it will be if we don't take dramatic action as soon as possible," Mr. Obama said in a speech at George Mason University. "A bad situation could become dramatically worse," he said, citing the risks of double digit unemployment and a trillion dollars of lost economic activity.

In recent trade, the DOW was moving lower by 0.99%. The broader S&P 500 had declined 0.62%, wiping out the gains made this year, while the NASDAQ was lower by 0.32%. The dollar was mostly lower on the day, with losses of 0.44% to the euro, 1.63% to the yen and 0.68% to the pound. Crude for February delivery was lower by $1.03 after yesterday's record 12% decline. Gold for February delivery was moving higher by $14.90.

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