US SMALL/MIDCAPS-Stocks slip as Dick’s weighs on retailers

* Dick’s Sporting Goods falls on outlook, consumer fears

* Clean Harbors Inc up on Gulf oil spill

* S&P MidCap 400 off 0.7 pct; S&P SmallCap 600 off 0.4 pct

By Edward Krudy

NEW YORK, May 18 (BestGrowthStock) – Small and mid cap stocks fell
on Tuesday as Dick’s Sporting Goods (DKS.N: )joined a number of
other retailers casting doubt on the consumer recovery with
cautionary forecasts for the future.

Dick’s Sporting Goods’ quarterly profit surpassed Wall
Street targets on improved margins, but a tepid profit forecast
for the second quarter sent the shares down 3.6 percent to
$27.46. For details, see [ID:nSGE64H0GI]

“You are starting to see a rollover in some of the consumer
names,” said Edward Hemmelgarn, chief investment officer of
Shaker Investments in Cleveland. “People are beginning to
question, maybe the consumer won’t just keep on spending, there
is something in the story about deleveraging and paying down
debt.”

The S&P MidCap 400 index (.MID: ) fell 0.7 percent while the
S&P SmallCap 600 index (.SML: ) lost 0.4 percent. That compared
with a 0.6 percent drop in the benchmark S&P 500 (.SPX: ).

Casting doubt on the strength of the consumer, the world’s
largest retailer Wal-Mart Stores Inc (WMT.N: ) said more than
ever its customers were living “paycheck-to-paycheck.” And
discount apparel and home fashions retailer TJX Cos Inc (TJX.N: )
gave a forecast suggesting its recent pace of growth may cool.
[ID:nN18146269]

The S&P midcap consumer discretionary index (.4GSPD: ) fell
0.8 percent, while the equivalent small cap index (.6GSPD: ) fell
0.9 percent.

Stocks traded erratically as investors also weighed the
outlook for the debt-laden euro zone, which they fear could
slow global growth, while a fall in U.S. building permits to a
six-month low in April suggested the housing recovery may
struggle.

Shares of South Financial Group (TSFG.O: ) fell 5.2 percent
to 28 cents, extending Monday’s 55 percent decline. Canada’s
Toronto-Dominion Bank (TD.TO: ) on Monday said it will buy South
Financial for about $191.6 million, paying $61 million in cash
or stock to South Financial shareholders, less than half of the
U.S. bank’s market value of $144.5 million as of Friday. It
will also pay $130.6 million in cash to the U.S. Treasury for
South Financial’s preferred shares.[ID:nSGE64G0HT]

On the upside, shares of Spreadtrum Communications (SPRD.O: )
rose 12.2 percent to $9.18 a day after the chipmaker swung to a
quarterly profit and forecast second-quarter revenue above Wall
Street estimates. For details, see [ID:nSGE64H0HC]

Shares in Clean Harbors Inc (CLH.N: ) rose 4.6 percent to
$65.78 after the waste management company said it would book a
sizable revenue gain from cleanup operations following the BP
(BP.L: ) oil spill in the Gulf of Mexico. [ID:nSGE64H0H5]

Investing Analysis

(Editing by Leslie Adler)

US SMALL/MIDCAPS-Stocks slip as Dick’s weighs on retailers