Below-Forecast Economic Data Leads The Retail Sector Into The Red

Retail stocks are trading in the negative territory today, as the news of an unexpected rise in weekly jobless claims weighed on the market. Leading economic indicators for the month of May failed to meet expectations, along with a Philadelphia manufacturing measure. The S&P Retail Index (RLX) fell 1.79%, or 3.49 points, by 2 pm today. The Labor Department announced today that the first-time state unemployment claims rose by 12,000 last week to 472,000. The disappointing jobless claims data is indicative of the fact that the high level of layoffs cannot be in sync with a huge job growth. Although new jobs are being churned out by the economy, they are not able to cope up with the rising unemployment rate. Retailers have always claimed that only a stable job market can lead to full consumer spending recovery. Shares of home-furnishings retailer Pier 1 Imports Inc PIR rallied 3.12%, or $0.25, on the news of an unexpected profit posted by the company today. PIR lowered the discounts and managed to expand its customer base Read more from Benzinga's Markets.