Stocks moved lower weighed down by Wal-Mart and a drop in materials stocks on concerns about China. Bobbi Rebell reports.
Weak earnings at Wal-Mart and the turmoil in Chinese markets pushed U.S. stocks lower. The Chinese slump pulled down commodity prices, which in turn sent metal and mining stocks lower like those of Alcoa and United States Steel. Dragging the Dow down as its biggest loser: Wal-Mart. The world's largest retailer cut its full-year profit forecast. Moves to improve customer service by hiking work hours and wages are biting into the retailer's bottom line. The blue chip leader on the day: Home Depot. A rise in home remodeling helped boost the retailer's quarterly same-store sales. Separately, U.S. building permits fell in July, but housing starts rose to nearly an eight-year high. Decision Economics' Carey Leahey: SOUNDBITE: CAREY LEAHEY, CHIEF U.S. ECONOMIST, DECISION ECONOMICS (ENGLISH) SAYING: "The Home Depots of the world can do very very well in this kind of environment when you have strong housing activity and the need to buy new appliances." Comparable store sales also rose at TJX. More visits by bargain hunters lifted sales at its T.J. Maxx and Marshalls outlets. American Apparel's penny stock fell further after the retailer said it may not have enough cash to keep operating over the next 12 months. In Europe, the drop in commodity prices and concerns over China's currency drove stocks lower.