On Friday, the stock market’s six consecutive weeks of winning came to an abrupt end as the market slumped amid fears of a dismal holiday shopping season — marking the second-biggest weekly loss of the year.
As the retail sector posted what the NY Times reported to be “disappointing” results from the third quarter, the cost of oil continued its descent — providing evidence of a continually increasing global supply.
Commercial oil inventories set a new record as they reached nearly 3 billion barrels by the end of September, according to the International Energy Agency.
Looking at the S&P 500, the index as a whole is down nearly 2 percent for the year.
Analyst Richard Jaffe with Stifel Nicolaus was quoted by The Associated Press in a report published on The Salt Lake Tribune as having said that there will be “a lot of apparel sales” and “a lot of gift giving” this Holiday season.
Christmas is boxed gifts (…) There will be a lot of gift giving, a lot of apparel sales.
According to Jaffe, the widespread selling was merely an overreaction and shoppers will be spending more than enough this holiday season, which kicks into high gear in a couple of weeks as Black Friday rolls around.
Adding to investor concerns, the United States government reported U.S. retail spending to have increased 0.1 percent back in October — slightly below analysts expectations.
J.C. Penney posted a 15.4 percent loss, GameStop dropped 16.5 percent and Fossil’s shares hit their lowest point in the last five years while the company simultaneously announced its $260 million acquisition of Misfit.