Stocks ended sharply lower on Tuesday, as Wal-Mart Stores Inc. warned high oil prices are taking a toll on consumer spending, and government data showed a larger-than-expected jump in inflation.
The Dow Jones Industrial Average fell 120.93, or 1.1 percent, to 10,513.45. The Standard & Poor's 500 Index dipped 14.53, or 1.2 percent, to 1,219.34. The Nasdaq Composite Index slumped 29.98, or 1.4 percent, to 2,137.06.
While Wal-Mart's earnings beat Wall Street's profit forecasts by 2 cents per share, the company's profit gain was its smallest in four years and its revenues missed estimates. The company warned that its third-quarter earnings would be lower than expected, blaming high gas prices for cutting into shoppers' spending.
Consumer prices rose in July, reflecting record highs for gasoline and other energy products while output at the nation's factories, mines and utilities slowed. The Labor Department said the U.S. consumer price index rose 0.5 percent last month ahead of analysts' expectations of a 0.4 percent gain while the "core" rate of inflation at the retail level rose 0.1 percent.
Among local companies, shares of Public Storage Inc. gained 4 percent to $65.53 after Standard & Poor's said late Monday that it will replace Delta Air Lines Inc. with the Glendale-based real estate investment trust on the S & P; 500 Index.
And Center Financial Corp. rose 3 percent to $24.35 after the L.A.-based holding company of Center Bank nearly tripled its net income for the second quarter, matching the average analyst estimate for earnings, at 37 cents per diluted share.
On the down side, shares of Mossimo Inc. fell 14.3 percent to $4.90 after Mossimo Giannulli, the company's founder and majority shareholder, withdrew an offer to buy the remainder of the company's shares and take it private. Giannulli told the board of the Santa Monica-based clothing company that he remains interested in acquiring publicly held shares, but that the stock price is now too high. He will not increase his $4-a-share bid.
And Jamdat Mobile Inc, slipped 4.2 percent to $20.12 after the L.A.-based entertainment content publisher announced the launch of the Tetris puzzle game on wireless carriers throughout Europe. But some analysts weren't giddy about the news, expressing anxiety over the abundance of competition in the already crowded mobile-content industry.
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