A rough Tuesday for Best Buy (NYSE: BBY ) had the rest of the retail sector
moaning and groaning right alongside on a generally lackluster day for the
broader markets. The electronics retailer sank about 15% Tuesday to $23.73 after
lousy third-quarter earnings that saw higher revenues but a 13% drop in profits,
suggesting that Best Buy was far too generous with its deals this holiday
season, dampening its margins. BBY also gave a gloomy forecast for 2012, saying
same-store sales would be flat at best. Best Buy's announcement made a poor
pairing with the other retail news du jour that overall sales were up just 0.2%
in November, far less than expected and had retail stocks running in retreat.
The SPDR S&P Retail ETF (NYSE: XRT ) dropped almost 3% Tuesday, and numerous
retailers like RadioShack (NYSE: RSH , -7.18%), Sears Holdings (NASDAQ: SHLD ,
-5.12%) and Macy's (NYSE: M , -4.98%) got burned. Even online e-tailing giant
Amazon (NASDAQ: AMZN ) got in on the act, dropping 4.75% to $180.51. The rest of
the market was brought down near day's end by governmental non-news, with the
Federal Reserve saying it would keep interest rates steady through mid-2013 and
offering no other economic help for now. The Dow Jones had climbed more than 100
points throughout the day but finished in the red by more than 60 points,
brought down by big names like Alcoa (NYSE: AA , -3.32%), Caterpillar (NYSE: CAT
, -2.42%) and Bank of America (NYSE: BAC , -2.39%). Three Up Pandora (NYSE: P ):
Up 6.45% (64 cents) to $10.57. ( Read more about Pandora here. ) Urban
Outfitters (NASDAQ: URBN ): Up 5.33% ($1.41) to $27.87. Groupon (NASDAQ: GRPN ):
Up 4.81% ($1.07) to $23.32. Three Down Green Mountain Coffee Roasters (NASDAQ:
GMCR ): Down 12.48% ($6.54) to $49.95. Endocyte (NASDAQ: ECYT ): Down 10.97%
($6.72) to $3.57. Morgan Stanley (NYSE: MS ): Down 8% (21 cents) to $15.17. As
of this writing, Kyle Woodley did not hold a position in any of the
aforementioned stocks. Check out our list of previous IP Market Recaps .
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