US stocks retreated before GDP, jobless claims data

U.S. stocks fell, giving the Standard & Poor’s 500 Index its longest slump this year, as Wal-Mart Stores Inc. retreated before GDP and jobless claims data is issued today.

The S&P 500 fell 0.3% to 1,692.77 at 4 p.m. in New York, its fifth straight losing session. The Dow Jones Industrial Average, which includes Wal-Mart, slid 61.33 points, or 0.4%, to 15,273.26. About 5.9 billion shares changed hands on U.S. exchanges, in-line with the three-month average.

“There is a lot of noise that’s disruptive to people doing anything with a great deal of confidence,” Don Hodges, founder of Dallas-based Hodges Funds, said in a phone interview for Bloomberg, referring to budget negotiations. His firm manages about $1.3 billion. “Anytime the market is as strong as it’s been in the last few weeks, you just know that it’s capable of having a pullback that shakes off people a little bit.”

In corporate news, Wal-Mart lost 1.5% to $74.65, the most significant drop in the Dow. Merchandise has been piling up because consumers have been spending less freely than Wal-Mart projected, and the company has forfeited some sales because it doesnt have enough workers in stores to keep shelves adequately stocked.

J.C. Penney sank 15% to $10.12, the lowest since December 2000. The stock has tumbled 49% in 2013. “Weak fundamentals, inventory rebuilding, and an underperforming home department will likely challenge J.C. Penney’s liquidity levels in the third quarter,” Kristen McDuffy, at New York-based analyst for Goldman, wrote yesterday in a note to clients.

Carnival Corp. retreated 5.3% to $32.70, extending a 7.7% drop yesterday to put the stock at its lowest since June. The world’s largest cruise-ship operator forecast an unexpected loss for the fourth quarter, and Morgan Stanley cut its recommendation to “underweight”, similar to a “sell” rating, from “equal weight”. Bank of America Corp. lowered its rating to “neutral” from “buy”.

Facebook Inc. rose 2.1% to $49.46, the stock’s sixth gain in the past seven sessions, with each advance setting a fresh record. Canaccord Financial Inc. initiated coverage of the social media company with a “buy” rating. Facebook is “very early in generating revenue from its enormous user base,” Michael Graham wrote in a note, giving the stock a price target of $60.