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Byline: CRAIG SHAW
The Nasdaq composite dipped 1.2% Wednesday after three days of gains. The Nasdaq 100 slumped 1.9%. Volume declined, a positive sign in pullbacks during a rally.
Youth apparel retailers swooned after several firms warned of weak back-to-school sales. Hot Topic dived 6.90, or 31%, to 15.55 on the heaviest volume of the year. The music-related apparel chain said July sales would fall short of views and second-quarter profit would be little changed from a year earlier. Its stock, already struggling at its 200-day line, hit fresh 2002 lows.
Children's Place Retail Stores gapped down 3.35, or 15%, to 18.96 on more than six times normal trade. The clothing retailer said it expects a second-quarter loss of 35-40 cents a share, below views of a 25-cent loss. Merrill Lynch cut its rating to neutral from buy. Urban Outfitters pierced its 200-day line, losing 4.50 to 23.26. Trade surged more than sixfold.
J. Jill Group violated its 50-day average with a 2.40-point loss to 22.30 on twice normal trade. That line has provided support throughout the women's apparel retailer's 50% run-up this year. It's 18% off its early ...