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THE REAL MOST ACTIVE Retail Sector Woes Slam Stock Indexes.(MAKING MONEY)

Investor's Business Daily

| October 01, 2002 | COPYRIGHT 2002 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: DAVID SAITO-CHUNG

The S&P 500 fell 1.5% on Monday on another down day in higher NYSE volume. The Dow industrial average took out its July 24 intraday low and lost 1.4%.

Retailers tumbled on news that consumer spending in August rose 0.3%, below economists' 0.5% forecast. Dow component Wal-Mart Stores slumped 2 to 49.24, sliding back below its 50-day moving average on above-average volume. The stock has gone sideways since notching an all-time high of 70.25 in December 1999. The world's largest retailer lowered its September same-store sales growth target to 3% to 4% vs. a previous projection of 4% to 6%. But it stuck to its fiscal 2003 earnings-per-share estimate of $1.76 to $1.78.

Target undercut its recent July low, sinking 2.39 to 29.52 on triple usual volume. The Wal-Mart rival has a worst-possible E for Accumulation/Distribution Rating, implying heavy selling by institutions. Its 47 Relative Price Strength Rating is weaker than Wal-Mart's 57.

Consumer-oriented firms also fared poorly. Nautilus Group, previously known as Direct Focus, dived 2.80 to 19.50 on four times normal trade. The stock has dropped 36% in the past nine ...

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