06 July 2012 10:04
Stocks closed mostly lower on Wall Street yesterday after signs emerged that Americans are spending at a slower pace and that China's economy may be in worse shape than previously thought.
American shoppers slowed their spending in June, resulting in tepid sales for many retailers. Target's stock fell 1% and Costco Wholesale fell less than 1% after reporting that sales rose less than analysts were expecting.
"It all boils down to one little word: uncertainty," said Peter Cardillo, chief market economist at Rockwell Global Capital. "No-one will spend if it feels like we're in a recession."
The reports raised concerns about Americans' ability to spend during the crucial back-to-school shopping season, which starts later this month.