Retailers wave the warning flags

Wal-Mart says its shoppers are concerned about their finances; Nordstrom, one of the better-performing retailers, warns on its third quarter and misses sales forecast.

NEW YORK -- A slew of earnings warnings from retailers Thursday, on top of poor September sales numbers, added credence to concerns that consumers are feeling tapped out and that retailers are headed for a difficult holiday period.

"Retailers really struggled last month because of slow sales and also because of the warm weather drag," said Ken Perkins, president of Retail Metrics.

Warner-than-usual September and early-October temperatures around the nation were blamed by some retailers for disappointing sales.

High-end seller Nordstrom, which has been one of the best-performing retailers, said Thursday that sales at its stores open at least a year - a key measure of retail performance known as same-store sales - rose 3.2 percent, missing analysts' forecasts for a 5 percent increase.

What's more, the retailer cut its third-quarter profit guidance to between 50 and 53 cents a share, much lower than its prior outlook of 61 to 64 cents a share.

Nordstrom said it struggled with much higher inventory levels it had planned for, a possible sign that its shoppers bought less.

Dow hits all-time high

Big blue-chip barometer hits intra-day record of 14,111 as Wall Street resumes the recent advance; Citigroup warning, drop in ISM index fuels hope of Fed rate cut.

NEW YORK -- Stocks surged Monday afternoon, with the Dow touching an all-time high above 14,110 as investors shrugged off a profit warning from Citigroup and instead focused on the possibility of more Fed rate cuts.

The Dow Jones industrial average (Charts) added around 210 points with an hour left in the session, rising as high as 14,111.53 and setting a new all-time intra-day high. The previous intra-day high was 14,021.95 from July 19.

The broader S&P 500 (Charts) index and the tech-fueled Nasdaq composite (Charts) both gained 1.3 percent. The Russell 2000 (Charts) small-cap index jumped more than 2 percent.

"You're seeing a continuation of the recent momentum," said Chris Johnson, CEO of Johnson Research Group. "There was unfavorable news in the financial arena, but the market is still rallying, which tells you that investors are afraid of getting left behind."

Investors were also perhaps reacting to hopes that any so-called "bad news," whether it be weak bank earnings or a dip in the ISM index, means that the Federal Reserve is more likely to cut interest rates again at its next policy meeting scheduled for the end of the month.