U.S. stocks fell for a second day as retailers posted results that disappointed investors while trade data fueled concern the Federal Reserve may begin to reduce its bond purchases this year. Treasuries slid, while the euro gained as reports signaled European economies are recovering.
U.S. stocks fell, giving the Standard & Poor’s 500 Index its biggest decline since June 24, as retailers’ results disappointed and trade data fueled concern the Federal Reserve may reduce its bond purchases this year.
American Eagle Outfitters Inc., a teen-apparel chain, tumbled the most in more than three years after saying second-quarter profit was less than it forecast amid disappointing sales of women’s clothing.
Companies from DreamWorks Animation SKG to American Eagle Outfitters Inc. are attractive takeover targets because they have cash-heavy balance sheets and their stocks have declined, said Morningstar Inc.
The worst U.S. crop conditions since the dust bowl era of the 1930s are tightening domestic supplies of cotton and boosting prospects for a rebound in prices that fell more than any other commodity this year.