Stocks on Wall Street fell Wednesday on receding hopes of a U.S.-China trade deal. Sources tell Reuters a limited "Phase One" deal could slide into next year. That offset strong earnings outlooks from a pair of retailers. The S&P 500 lost 4-tenths percent, falling for a second straight day.
Needham Funds portfolio manager, Chris Retzler:
SOUNDBITE: NEEDHAM FUNDS PORTFOLIO MANAGER, CHRIS RETZLER (ENGLISH) SAYING:
"We've been looking at, are we going to have some resolution to the trade. And I think, today, that's a little bit of the blip that we're seeing, and it's what keeps me up at night - that we're somehow one tweet away from some bad news."
One day after downbeat earnings forecasts from retailers Home Depot and Kohl's, Target raised its full-year profit outlook. It expects a strong holiday shopping season. Home improvement retailer Lowe's did likewise, helping ease concerns over the health of the American consumer.
But Urban Outfitters shares plunged, undergoing their worst one-day performance in nearly 7 years. The behomeian apparel retailer's profit dropped. Weak demand for its namesake women's apparel brand caused sales to miss estimates.