Photo by Miguel Candela/SOPA Images/LightRocket via Getty Images

Nordstrom, one of the few retail market bright spots in 2018, announced earnings and guidance on Wednesday that were unimpressive.

By the numbers: The company projected earnings per share for fiscal 2018 will fall to the lower end of its $3.27 to $3.37 range and noted weakness in its full-price stores, where same-store sales rose by 0.3%. It will resort to promotions to unload the excess inventory. Nordstrom's stock fell 5% as a result.

There may be more disappointment in store for luxury retailers, according to Goldman Sachs economist Daan Struyven.

  • Struyven argues that 2018's stock market losses will have a "meaningful effect on the spending of wealthy households," and that "spending on luxury goods largely purchased by wealthy households is highly sensitive to stock prices."
  • In fact, he predicts it could take half a percentage point off U.S. GDP growth in 2019, with overall tighter financial conditions knocking off 1%.

The bottom line: "While the share of equities owned by the wealthiest households has risen over the last three decades, equity holdings have more than tripled as a share of disposable income at the aggregate level and have also risen substantially for middle and upper-middle wealth groups. Therefore, a 1% move in stock prices now has a much larger impact on wealth levels for most groups."

Go deeper: The sign that Apple has ripened

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Updated 6 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Eniola Odetunde/Axios

  1. Global: Total confirmed cases as of 10 p.m. ET: 30,065,728 — Total deaths: 944,604— Total recoveries: 20,423,802Map
  2. U.S.: Total confirmed cases as of 10 p.m. ET: 6,674,070 — Total deaths: 197,615 — Total recoveries: 2,540,334 — Total tests: 90,710,730Map
  3. Politics: Former Pence aide says she plans to vote for Joe Biden, accusing Trump of costing lives in his coronavirus response.
  4. Health: Pew: 49% of Americans would not get COVID-19 vaccine if available today Pandemic may cause cancer uptick The risks of moving too fast on a vaccine — COVID-19 racial disparities extend to health coverage losses.
  5. Business: Retail sales return to pre-coronavirus trend.
Ina Fried, author of Login
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