Bleak Housing Starts Data Leads Retail Sector In The Red Today

Retail stocks dropped today on news of the US home builders curbing construction beyond expectations. It triggered further anticipation that construction materials and home related products’ demand may be adversely affected. The S&P Retail Index (RLX) inched up 1.27%, to 441.69 by 12:48 pm. Reports revealed that May housing starts dipped to the lowest level since December, the month in which a federal tax break for home buyers ended. The seasonally adjusted annual rate of housing starts stood at 593,000, down 10%. Single-family homes starts plummeted 17% to 468,000 of seasonally adjusted rate, the lowest in a year. Shares of Home Depot Inc HD, the largest home-improvement retailer, fell 0.71%. The big appliance seller Sears Holdings Corp SHLD plunged 2.31% and Lowe's Companies LOW declined 3.01%, by 1:03 pm. Meanwhile, Kohl's Corp KSS went down 0.41% and Charming Shoppes Inc CHRS shed 2.06%. Read more from Benzinga's Markets.