US Stocks Skid as Macy’s Drags Retailers Sharply Lower – ABC News

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U.S. stock indexes are falling Wednesday morning, a day after their biggest gain in two months. Office supply companies Office Depot and Staples are tumbling after a judge blocked their plans to merge. Consumer stocks are plunging after Macy’s slashed its profit forecast and reported a steep drop in earnings.

KEEPING SCORE: The Dow Jones industrial average sank 113 points, or 0.6 percent, to 17,814 as of 10:04 a.m. Eastern time. The Standard & Poor’s 500 index fell 9 points, or 0.5 percent, to 2,074. The Nasdaq composite index lost 15 points, or 0.3 percent, to 4,795.

THAT WASN’T EASY: Office Depot and Staples plunged after calling off their proposed merger. The companies called off the $6.3 billion deal after a federal judge ruled that competition for office supplies would be reduced if the largest office-supply chain combined with the second-largest. The Federal Trade Commission had sued to block the deal. Office Depot skidded $2.38, or 40 percent, to $3.69 and Staples lost $1.87, or 18.1 percent, to $8.49.

AN EXTRA LIFE: Video game maker Electronic Arts’ quarterly profit and sales were far stronger than expected, and it gave strong guidance for its current fiscal year. The stock jumped $9.22, or 14.3 percent, to $73.76.

DISASTER ON 34TH STREET: The department store posted disappointing sales as shoppers spent less on clothes and international tourists spent less. Macy’s also sharply reduced its annual profit forecast. The stock sank $4.44, or 12 percent, to $32.55. Retailers including Michael Kors, Nordstrom, Ralph Lauren and Kohl’s all took big losses.

NOT A DISNEY ENDING: Disney posted weaker-than-expected earnings and sales. Its parks and consumer products divisions didn’t do as well as analysts hoped, and the company said it’s discontinuing its Disney Infinity video game line because the changing market is too risky. Its stock lost $5.01, or 4.7 percent, to $101.59.

WATCH OUT: Watch and accessories maker Fossil Group disclosed disappointing sales and said conditions have gotten worse. It cut its projections for the year, and its stock dropped $12.57, or 31.3 percent, to $27.53.

STAMPEDE: Pet food maker Blue Buffalo Pet Products advanced after it reported strong quarterly results and boosted its sales forecast for the year. The stock picked up $1.82, or 7.6 percent, to $25.71.

OIL: Benchmark U.S. crude lost 43 cents, or 1 percent, to $44.23 a barrel in New York. On Tuesday oil matched its highest closing price of 2016. Brent crude, the benchmark for international oil prices, fell 8 cents to $45.44 a barrel in London.

OVERSEAS: Germany’s DAX slid 0.6 percent and France’s CAC 40 was 0.6 percent lower. Britain’s FTSE 100 fell 0.1 percent. Japan’s Nikkei 225 edged up 0.1 percent while China’s Shanghai Composite Index added 0.2 percent. South Korea’s Kospi fell 0.1 percent.

BONDS, CURRENCIES: Bond prices held steady and the yield on the 10-year U.S. Treasury note was unchanged at 1.76 percent. The dollar fell to 108.46 yen from 109.30 yen. The euro rose to $1.1427 from $1.1370.

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AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at http://bigstory.ap.org/journalist/marley-jay