Business

Snap plunges as Wall Street loses ground

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Wall Street closed lower on Thursday, pulled down by lower-than-expected sales at major US department stores and a selloff in Snap.

The Snapchat owner was among the biggest losers after the messaging app posted disappointing results for the first quarter.

Its shares tumbled 21% on slowing user growth and revenue in its first results as a public company.

The Dow Jones fell 23.6 points to 20,919.4.

The S&P 500 dropped 5.19 points to 2,394.4 and the Nasdaq index shed 13.1 points to 6,115.9.

Shares of department store operator Macy's shed 17% after its quarterly results were released, leading a broader sell-off of retail stocks.

Kohl's and Nordstrom, which also reported on Thursday, closed down almost 8%, with firms such as Target and Ralph Lauren not far behind.

"It's a gut check about the health of the consumer," said Phil Blancato at Ladenburg Thalmann Asset Management. "It's a canary in the coalmine moment."

Bank stocks were weighed down by Wells Fargo, which fell nearly 2% after investors were underwhelmed by a cost-cutting plan unveiled on Thursday.

The bank, which has been rocked by a a fake account scandal, failed to convince investors it was now on the right path.