Weak earnings from Macy's and Disney drove stocks lower on Wall Street. Fred Katayama reports.
Stocks got slammed. Blame consumer stocks like Disney and Macy's, which pulled down Wall Street with weak earnings. Ross Gerber of Gerber Kawasaki: (SOUNDBITE) (English) ROSS GERBER, CEO, GERBER KAWASAKI, SAYING: "The problem with the stock market is clearly earnings, and, actually, the stock market's been very rational right now and behaving correctly for a decline in earnings." Macy's quarterly profit plummeted as sales fell for a fifth straight quarter. Shoppers cut back on apparel purchases. Shares dropped sharply and pulled down those of its rivals. Disney the biggest drag on the Dow one day after the Mouse House had a rare earnings miss despite rising profit. Staples and Office Depot's shares plunged after the office supply chains called off their merger plans. A federal judge cited antitrust concerns in ordering a temporary halt to the deal. Wendy's raised its full-year profit forecast. But the burger chain sees a slowdown in comparable sales in the current quarter, and the stock fell. In Europe, stocks slipped on weak earnings. But the FTSE 100 managed to breakeven.