Sears Holdings Corp shares could fall 50 percent after extreme cost-cutting depleted the retailer's ability to generate cash flow necessary to win back market share from Wal-Mart Stores Inc and other rivals.
Sears Holding Corp reported a quarterly loss instead of the profit Wall Street was expecting as the retailer struggled to cut costs to keep up with falling revenues, and its shares fell nearly 13 percent.
Target Corp reported its eighth consecutive drop in quarterly profit, but the results were better than Wall Street had expected as the No 2 U.S. discount retailer cut costs and stocked less merchandise.
Wal-Mart Stores Inc posted better-than-expected quarterly earnings as a clampdown on inventory offset falling sales, and the company forecast a full-year profit that could beat Wall Street estimates, sending its shares up 1.7 percent.
Americans shopped less in July and more signed up for jobless benefits last week in a double dose of bad news for the U.S. economy just a day after the Federal Reserve said it saw a leveling out of the slump.
Consumer goods exporter Li & Fung Ltd said profit would improve in the second half of the year after a weak first half amid early signs of an improving global economy, giving it confidence to reaffirm targets in its three-year plan.