(Corrects name of chain store in second line of second
paragraph to TJ Maxx from TJX Maxx.)
* Retailers down after earnings
* AstraZeneca investor protests spurning of Pfizer bid
* Aeroflex jumps, to be acquired by Cobham for $1.46 bln
* Indexes off: Dow 0.37 pct, S&P 0.32 pct, Nasdaq 0.45 pct
By Chuck Mikolajczak
NEW YORK, May 20 U.S. stocks dipped on Tuesday,
weighed down by retailers after earnings from TJX Companies and
TJX shares slumped 5.7 percent to $55.07 as the biggest drag
on the S&P 500 after the owner of off-price chain stores TJ Maxx
and Marshalls reported lower-than-expected quarterly revenue.
Staples Inc tumbled 10.8 percent to $11.95 after
the office supply retailer posted first-quarter earnings and
forecast a decline in sales in the current quarter. The S&P
retail index fell 0.4 percent.
"A lot of the rest of these companies, unless they are
solely focused on the East Coast, there was decent weather in
other parts of the country, so that is kind of disturbing," said
Kim Forrest, senior equity research analyst, Fort Pitt Capital
Group in Pittsburgh.
Caterpillar shares dropped 1.8 percent to $103.45
after the heavy machinery company said retail statistics for the
three-month rolling period ending in April were down 13 percent.
"So not only is the retail sector not doing well but neither
is heavy construction. It's a little more concerning in the
larger equipment realm because to me that says new projects
aren't being picked up either," Forrest said.
Dick's Sporting Goods estimated current-quarter
earnings way below analysts' average estimate and cut its
full-year 2014 adjusted earnings and same-store sales growth
forecasts due to weak demand for its golf and hunting products.
Its shares plunged 15.7 percent to $44.80.
But Home Depot rebounded from premarket declines
after the company's chief financial officer said sales in May
were "robust," taking the sting out of its disappointing
quarterly results. Its shares rose 1.8 percent to $77.90 as the
best performer on the S&P 500.
Equities have pulled back more than 1 percent since hitting
their most recent record high May 13 as economic data has
painted a mixed picture and failed to confirm an acceleration in
the economy that many had hoped to see.
The Dow Jones industrial average fell 60.3 points, or
0.37 percent, to 16,451.56, the S&P 500 lost 6.04 points,
or 0.32 percent, to 1,879.04 and the Nasdaq Composite
dropped 18.56 points, or 0.45 percent, to 4,107.25.
U.S.-listed shares of AstraZeneca advanced 2 percent
to $72.07 after its twelfth largest shareholder, Schroders,
joined a chorus of investor disapproval over its rejection of a
takeover offer by Pfizer and urged it back into talks.
Aeroflex Holding Corp jumped 25.8 percent to $10.45.
British aerospace and defense supplier Cobham is buying
the U.S. communications equipment maker for $1.46 billion.
(Editing by Bernadette Baum)