US stocks dip as phone stocks fall; earnings hit retailers

NEW YORK (AP) — U.S. stocks are trading lower this morning as losses for phone and utility companies continue to drag the market from its recent record highs.

Retailers including Target and Lowe's are skidding after disappointing earnings. The Federal Reserve will release minutes from its July meeting in the afternoon.

The Dow Jones industrial average fell 58 points, or 0.3 percent, to 18,493 as of 10:25 a.m. Eastern time. The Standard & Poor's 500 index gave up 6 points, or 0.3 percent, to 2,171. The Nasdaq composite lost 16 points, or 0.3 percent, to 5,211.

Phone companies and utilities were set to take the biggest losses for the second day in a row. Those stocks have been surging for most of this year as investors were attracted to their safety and high dividend yields, but lately investors have shifted their money to other industries, including technology and finance.

Retailer Target skidded after it cut its annual profit forecast and lowered its estimates for sales at older stores. Target is facing stiff competition and analysts say it's had trouble with grocery sales. The stock fell $4.97, or 6.6 percent, to $70.51.

Urban Outfitters jumped after it disclosed solid second-quarter results. Sales at older stores improved, surprising analysts who expected a decline. The stock gained $5, or 16 percent, to $36.24.

Barnes & Noble tumbled after the book seller said CEO Ronald Boire is leaving after less than a year. The company said its board determined that Boire was not a good fit. Chairman and former CEO Leonard Riggio, who was scheduled to retire next month, will stay with the company as it seeks a new CEO.