Stocks have moved mostly lower over the course of morning trading on Friday, giving back ground after seeing some strength in the two previous sessions. The pullback by the markets comes amid a light day on the economic front.
The major averages have edged up off their lows for the session in the past few minutes but remain firmly negative. The Dow is down 81.77 points or 0.7 percent at 12,523.55, the Nasdaq is down 16.48 points or 0.6 percent at 2,806.83 and the S&P 500 is down 9.24 points or 0.7 percent at 1,334.36.
Retail stocks are helping to lead the markets lower, with Gap (GPS) and Aeropostale (ARO) posting steep losses after providing disappointing guidance. Shares of Gap and Aeropostale are down by 17.3 percent and 18.2 percent, respectively.
Gap reported first quarter earnings of $0.40 per share, down from $0.45 per share in the same quarter last year but above analyst estimates for earnings of $0.39 per share. However, the company also said it now expects full year earnings of $1.40 to $1.50 per share, well below estimates for $1.83 per share.
The company attributed the lower guidance to expectations that product costs per unit will be up about 20 percent in the second half of the year, more than outweighing retail price increases.
Aeropostale reported first quarter earnings that came in line with analyst estimates but forecast second quarter earnings well below current expectations.
Citing business trends and an uncertain retail environment, Aeropostale also said it is neither reiterating nor providing an update to its full year guidance.
In other news out of the retail sector, Liberty Media has offered to acquire bookstore operator Barnes & Noble (BKS) for $17 per share in cash, representing a total value of about $1 billion. The offer represents a 20 percent premium to Barnes & Noble's closing price on Thursday.
Meanwhile, Brocade (BRCD) is up by 6.4 percent after the networking equipment provider reported second quarter adjusted earnings of $0.13 per share on revenues that rose 9.8 percent to $550 million. Analysts had expected earnings of $0.10 per share on revenues of $550 million.
Sector News
As mentioned above, retail stocks are seeing considerable weakness in morning trading, dragging the NYSE Arca Retail Index down by 1.5 percent. With the loss, the index is pulling back further off the record closing high it set last Thursday.
While Gap and Aeropostale are leading the way lower, American Eagle Outfitters, (AEO), AnnTaylor (ANN), and J.C. Penney (JCP) are also posting notable losses.
Steel stocks have also come under pressure, dragging the NYSE Arca Steel Index down by 1.6 percent. Universal Stainless (USAP) is turning in one of the sector's worst performances, falling by 5.7 percent.
Considerable weakness has also emerged among gold stocks, as reflected by the 1.7 percent loss currently being shown by the NYSE Arca Gold Bugs Index. The weakness is the sector comes even though the price of gold has moved higher on the day.
Health insurance, pharmaceutical, and software stocks are also seeing notable weakness, while some strength is visible among electronic storage stocks. Within the storage sector, STEC, Inc. (STEC) is up by 12.2 percent on news of large share purchases by the company's top two executives.
Stocks Driven by Analyst Comments
Shares of Leap Wireless (LEAP) have shown a notable move to the downside over the course of the morning, with the wireless services provider currently down by 5.7 percent. With the loss, Leap is pulling back further off the nearly one-year closing high it set earlier this month.
The loss by Leap comes after JP Morgan lowered its rating on the company's stock to Neutral from Overweight with a $16 price target. JP Morgan noted that Leap typically faces slower business during the summer months.
Patterson Companies (PDCO) is also under pressure after UBS downgraded its rating on the supplier of dental and veterinary products to Neutral from Buy. Shares of Patterson are down by 2.2 percent after ending the previous session at a three-year closing high.
Meanwhile, shares of WebMD (WBMD) are currently up by 4.4 percent after Goldman Sachs raised its rating on the health information services provider to Buy. WebMD is climbing further off the nine-month closing low it set on Tuesday.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Friday as the Bank of Japan held rates steady. Japan's benchmark Nikkei 225 Index edged down by 0.1 percent, while Hong Kong's Hang Seng Index inched up by 0.2 percent.
Meanwhile, the major European markets have all moved to the downside over the course of the trading day. The U.K.'s FTSE 100 Index is down by 0.1 percent, while the French CAC 40 Index is down by 0.7 percent and the German DAX Index is down by 1.2 percent.
In the bond market, treasuries have shown a lack of direction over the course of the morning. The yield on the benchmark ten-year note, which moves opposite of its price, is currently down by 1.1 basis points at 3.16 percent.
For comments and feedback contact: editorial@rttnews.com
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.