Stocks tumble at the open, with disappointing guidance from a major retailer weighing on sentiment.
Best Buy (BBY 21.37, -2.51) said that the changes in consumer behavior
since mid-September have created the most difficult climate the
retailer has ever seen. As a result, the company slashed its fiscal
year 2009 (ends in February) earnings per share guidance to between
$2.30 and $2.90 from its previous forecast of $3.25 to $3.40. This
falls well below the consensus estimate of $3.02 per share. Best Buy
earned $3.18 per share last year.
Retailers are down 3.9% this session. Separately, Treasury Secretary Paulson will provide more information on
the government's Troubled Asset Relief Program at 15:30 GMT.