Article: Apparel, retail stocks hit by tumbling Dow Jones. (Dow Jones Industrial stocks)

NEW YORK -- Apparel and retail stocks were caught in the downdraft as the Dow Jones Industrials slumped 49.79 points Thursday, reacting to the fallout from the bankruptcy of Orange County, California.

As a result of the bankruptcy, billions in securities held as collateral by investment firms have been frozen and the consequences are still unclear.

Among the most active issues on the New York Stock Exchange, Wal-Mart Stores dropped 1 1/8 to 21 1/4, a new 12-month low for the discounter.

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