Stocks rose on Thursday, but gains were capped as disappointing holiday sales from Macy's and a revenue guidance cut from American Airlines pressured retail and airline shares. Fear that the U.S. government shutdown might continue for a long time also weighed on stocks.
The S&P 500 climbed 0.4 percent to 2,596.64 — notching its first five-day winning streak since September — as the real estate and industrials sectors outperformed. The Dow Jones Industrial Average also posted a five-day winning streak, rising 122.80 points to 24,001.92 as Boeing outperformed. The Nasdaq Composite gained 0.4 percent to 6,986.07.
Macy's shares tanked more than 18 percent — their worst day ever — after reporting its same-store sales grew by just 1.1 percent in November and December. The company also cut its earnings and revenue forecast for fiscal 2018.
The sharp decline in Macy's dragged down the entire retail space. The SPDR S&P Retail ETF (XRT) dropped more than 1.5 percent. Shares of Kohl's fell 4.8 percent while Nordstrom declined 4 percent.
Meanwhile, American Airlines fell more than 4 percent after slashing its revenue growth forecast for the fourth quarter. Shares of JetBlue Airways and Southwest Airlines both fell.