Dow Sinks 300 On Weak Retail, Economic Data

The Dow is down over 300 points with an hour of trading left in the session, as a new wave of negative economic data and weak retail sales numbers have investors in a sour mood.

This morning, the ADP National Employment Report showed that private sector employment decreased by 33,000 in August, versus the consensus of a 30,000 drop. Also, initial jobless claims were 444,00, which was above the consensus of 420,000.

The ISM Services Index was a rare bright spot, showing a gain to 50.6 which was above the consensus of 49.5.

Strong August sales results from discounter Wal-Mart (NYSE: WMT) proved to be bad news for most everyone else, including teen retailer Abercrombie & Fitch (NYSE: ANF) and intimate apparel retailer Limited Brands (NYSE: LTD). As more and more shoppers go to Wal-Mart to stretch their dollar it is taking away sales from the specialty brands.

Financials were under pressure again as some fed talk suggested the housing market has not bottomed and the credit crisis may be deepening. The key ETF for the sector, Financial Select Sector SPDR (AMEX: XLF), is down 4%.

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