Retail Stocks Remained The Biggest Sector Decliner Today, Led By BBBY And NKE

The US retail sector dropped the most in the broader markets today, led by the lower-than-expected Q2 earnings guidance from Union, New Jersey-based Bed, Bath & Beyond BBBY. Warnings about enhanced cost pressures from Nike Inc NKE also weighed on the sector. Shares of BBBY fell 4.17%, while those of NKE dropped 4.28%. BBBY’s co-founder Leonard Feinstein commented, "While the economic environment appears to be showing some signs of stabilizing, it appears the consumer continues to face economic challenges, and the pressures of the macroeconomic environment still persist." Analysts at FBR Capital Markets upgraded Office Depot Inc ODP from “market perform” to “outperform.” ODP's shares gained marginally following the news, but declined 2.05% to $4.78 by 1:07 pm. The No. 1 US electronics retailer Best Buy Company BBY plunged 2.62%, to $35.68. The company hiked its quarterly dividend by 7%. Hasbro Inc HAS rallied 5.79% to $43.5. The toymaker rejected claims that it is in talks with a private equity firm for a leveraged buyout. However, it confirmed that it had been approached by a firm regarding a deal, which Hasbro’s board did not approve. The S&P Retail Index climbed 0.22% to 416.74 by 1:20 pm. On Tuesday, the Federal Reserve maintained the benchmark interest rate. However, it slashed its projection on concerns over Europe’s sovereign debt crisis. Read more from Benzinga's Markets.