Markets Stumble on Retail Worries

Mixed, but mostly negative, retail earnings out today led to another shaky day in the market following yesterday's rally. News of coming cash injections from foreign investors also helped to underscore the pervasive negative atmosphere for Merrill Lynch and Citigroup.

Capital One Financial (COF | Quote | Chart | News | PowerRating) fell as much as 9% in morning trading, after the company lowered its earnings forecast for 2008 by more than 20% (full story).

AnnTaylor (ANN | Quote | Chart | News | PowerRating) fell 15% today after reporting that December same-store sales fell 9.4% this year (full story).

Men's Wearhouse (MW | Quote | Chart | News | PowerRating) sank nearly 30% today, after slashing its Q4 and full 2007 earnings outlook (full story).

Wal-Mart (WMT | Quote | Chart | News | PowerRating) stuck out among the mostly negative retail sector, rallying 1.7% on a positive increase in same-store sales for December.

The Wall Street Journal reported the Citigroup (C | Quote | Chart | News | PowerRating) and Merrill Lynch (ML | Quote | Chart | News | PowerRating) are in need of major cash infusions from foreign governments to stay afloat. The companies are facing an estimated $25 billion worth of losses (combined) when the companies report earnings next week (full story).

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