SAN JOSE (CBS SF/AP/CNN) — Apple stock continued its free-fall, losing nearly 5 percent of its value in Tuesday trading on the New York Stock Exchange, pulling the entire market down with it.
Apple was joined by Walgreens and Chevron in helping to drive stocks lower as the market dropped 551 points. Also tumbling were retail stocks after several filed earnings during the day.
Techs battered NASDAQ, which dropped to 6,908.82 or a 1.7 percent. The S&P 500 was driven down by energy stocks and finished at 2,641.89 off 48.83 points at the closing bell.
Target kicked off a busy earnings day across retail with sales and profit margins that fell short of investors’ high expectations.
Despite a robust 5.1% sales gain at stores open for at least a year and 49% digital growth, Wall Street punished Target for its profit margin drop-off. Target’s costs are rising as it races to ship more orders online to compete with Amazon. Shares of Target (TGT) fell as much as 13%.
Target expects same-store sales during the holiday season to increase 5% as it cuts prices and invests in convenient new ways to shop. The company is offering free two-day shipping on hundreds of thousands of items to win customers during the holidays, with no minimum purchase required. It has also remodeled stores, added new smaller stores in cities, and rolled out drive-up at 1,000 stores and in-store pickups from online orders.
“I still see a very positive story here for brick-and-mortar retailers that are not anchored to malls,” said eMarketer analyst Andrew Lipsman. “Somewhat moderated holiday outlooks — combined with a much more uncertain 2019 environment — are likely behind the near-term sell-off.”
Kohl’s (KSS) also reported a positive quarter Tuesday, but a similar story played out on Wall Street. Kohl’s, which has found creative ways to reformat its stores and drive traffic, tumbled 11%. Investors faulted the company for guidance that came in on the lower end of some analysts’ expectations
Meanwhile, Apple was at $176.98 a share (down 4.78 percent) while its Silicon Valley FANG counterparts — Facebook, Amazon, Netflix and Google — were seeing mixed results. Facebook was up just less than a dollar to $132.43. Netflix was down 1.34 percent at $266.98, Google was up slightly at $1,030 and Amazon was just over 1 percent at $1,496.46.
Industrial companies also fell as Boeing — which closed lower for a ninth straight session — lost 1 percent of its stock value.
© Copyright 2018 CBS Broadcasting Inc. All Rights Reserved. The Associated Press and CNN contributed to this report.