Shares of retail stocks including Gap (NYSE: GPS) , Wayfair (NYSE: W) , and Nordstrom (NYSE: JWN) were all falling today after a disappointing earnings report from Target (NYSE: TGT) cast a pall over the discretionary retail sector.
Target is seen as something of a bellwether in discretionary retail as it's one of the largest retailers in categories like home goods and apparel, and it draws customers from a wide range of demographics. With Gap and Nordstrom's third-quarter earnings reports not yet out, investors seemed to take a dimmer view of those retailers, especially since they've underperformed Target in recent years. Wayfair, meanwhile, has already reported third-quarter earnings, but Target's update may signal that a recovery is further away than hoped.
As of 1:11 p.m. ET, Gap stock was down 6.2%, Wayfair had lost 8.7%, and Nordstrom was 10% lower. At the same time, Target plunged 12.5%.
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Why Gap, Wayfair, and Nordstrom Stocks Were All Falling Today