Rotten Tomato Stocks
No Result
View All Result
  • News
    Malakoff Shares Fall After First-Quarter Loss

    Malakoff Shares Fall After First-Quarter Loss

    Shell Agrees to Pay $10 Million for Air Pollution at Massive New Pennsylvania Petrochemical Plant

    Shell Agrees to Pay $10 Million for Air Pollution at Massive New Pennsylvania Petrochemical Plant

    Do Not Call: States Sue Telecom Company Over Billions of Robocalls

    Do Not Call: States Sue Telecom Company Over Billions of Robocalls

    Wall Street Slides as Debt Worries Worsen

    Wall Street Slides as Debt Worries Worsen

  • NYSE
    RLJ Lodging Trust (NYSE:RLJ) Short Interest Down 13.0% in May

    RLJ Lodging Trust (NYSE:RLJ) Short Interest Down 13.0% in May

    Big Lots’ stock tumbles toward 32-year low after losses nearly double forecasts, dividend is suspended

    Big Lots’ stock tumbles toward 32-year low after losses nearly double forecasts, dividend is suspended

    Eversource Energy (NYSE:ES) Stock Price Down 2.8% Following Analyst Downgrade

    Eversource Energy (NYSE:ES) Stock Price Down 2.8% Following Analyst Downgrade

    Albany International (NYSE:AIN) Seems To Use Debt Quite Sensibly

    Albany International (NYSE:AIN) Seems To Use Debt Quite Sensibly

  • NASDAQ
    ACV Auctions Inc. (NASDAQ:ACVA) Short Interest Down 8.5% in May

    ACV Auctions Inc. (NASDAQ:ACVA) Short Interest Down 8.5% in May

    Is Cognizant Technology Solutions (NASDAQ:CTSH) A Risky Investment?

    Is Cognizant Technology Solutions (NASDAQ:CTSH) A Risky Investment?

    Adicet Bio, Inc. (NASDAQ:ACET) Sees Significant Decline in Short Interest

    Adicet Bio, Inc. (NASDAQ:ACET) Sees Significant Decline in Short Interest

    Nikola stock falls after EV maker receives notice of noncompliance with minimum-price listing requirement

    Nikola stock falls after EV maker receives notice of noncompliance with minimum-price listing requirement

  • OTC
    China Eastern Airlines 3Q Loss Widens on Low Travel Demand

    China Eastern Airlines 3Q Loss Widens on Low Travel Demand

    Corus Entertainment 4Q Profit Falls

    Corus Entertainment 4Q Profit Falls

    Nintendo Co. Ltd. ADR falls Monday, still outperforms market

    Nintendo Co. Ltd. ADR falls Monday, still outperforms market

    Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

    Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

  • TSX
    US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

    US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

    S&P/TSX composite falls on drop in materials sector, loonie tops 81 cents US

    S&P/TSX composite falls on drop in materials sector, loonie tops 81 cents US

    Bitcoin Is Falling: Should You Buy the Dip?

    Bitcoin Is Falling: Should You Buy the Dip?

    CN Rail Stock Is So Undervalued That it’s Absurd

    CN Rail Stock Is So Undervalued That it’s Absurd

  • News
    Malakoff Shares Fall After First-Quarter Loss

    Malakoff Shares Fall After First-Quarter Loss

    Shell Agrees to Pay $10 Million for Air Pollution at Massive New Pennsylvania Petrochemical Plant

    Shell Agrees to Pay $10 Million for Air Pollution at Massive New Pennsylvania Petrochemical Plant

    Do Not Call: States Sue Telecom Company Over Billions of Robocalls

    Do Not Call: States Sue Telecom Company Over Billions of Robocalls

    Wall Street Slides as Debt Worries Worsen

    Wall Street Slides as Debt Worries Worsen

  • NYSE
    RLJ Lodging Trust (NYSE:RLJ) Short Interest Down 13.0% in May

    RLJ Lodging Trust (NYSE:RLJ) Short Interest Down 13.0% in May

    Big Lots’ stock tumbles toward 32-year low after losses nearly double forecasts, dividend is suspended

    Big Lots’ stock tumbles toward 32-year low after losses nearly double forecasts, dividend is suspended

    Eversource Energy (NYSE:ES) Stock Price Down 2.8% Following Analyst Downgrade

    Eversource Energy (NYSE:ES) Stock Price Down 2.8% Following Analyst Downgrade

    Albany International (NYSE:AIN) Seems To Use Debt Quite Sensibly

    Albany International (NYSE:AIN) Seems To Use Debt Quite Sensibly

  • NASDAQ
    ACV Auctions Inc. (NASDAQ:ACVA) Short Interest Down 8.5% in May

    ACV Auctions Inc. (NASDAQ:ACVA) Short Interest Down 8.5% in May

    Is Cognizant Technology Solutions (NASDAQ:CTSH) A Risky Investment?

    Is Cognizant Technology Solutions (NASDAQ:CTSH) A Risky Investment?

    Adicet Bio, Inc. (NASDAQ:ACET) Sees Significant Decline in Short Interest

    Adicet Bio, Inc. (NASDAQ:ACET) Sees Significant Decline in Short Interest

    Nikola stock falls after EV maker receives notice of noncompliance with minimum-price listing requirement

    Nikola stock falls after EV maker receives notice of noncompliance with minimum-price listing requirement

  • OTC
    China Eastern Airlines 3Q Loss Widens on Low Travel Demand

    China Eastern Airlines 3Q Loss Widens on Low Travel Demand

    Corus Entertainment 4Q Profit Falls

    Corus Entertainment 4Q Profit Falls

    Nintendo Co. Ltd. ADR falls Monday, still outperforms market

    Nintendo Co. Ltd. ADR falls Monday, still outperforms market

    Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

    Ocado Group PLC Revenue of Ocado Retail in Q3 Fell 10.6%

  • TSX
    US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

    US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

    S&P/TSX composite falls on drop in materials sector, loonie tops 81 cents US

    S&P/TSX composite falls on drop in materials sector, loonie tops 81 cents US

    Bitcoin Is Falling: Should You Buy the Dip?

    Bitcoin Is Falling: Should You Buy the Dip?

    CN Rail Stock Is So Undervalued That it’s Absurd

    CN Rail Stock Is So Undervalued That it’s Absurd

No Result
View All Result
Rotten Tomato Stocks
No Result
View All Result

Why Department Store Stocks Pulled Back This Week

Editorial Staff by Editorial Staff
July 9, 2021
0
Why Department Store Stocks Pulled Back This Week

What happened

In a holiday-shortened week, department store stocks have been on the losing side as fears of COVID-19’s spreading Delta variant and falling bond yields left investors feeling warier about the cyclical sector. Among the department store stocks that had lost ground as of the close of trading Thursday were Kohl’s (NYSE:KSS), which was down 6.7% for the week; Nordstrom (NYSE:JWN), which had given up 8.5%; and Macy’s (NYSE:M) was off by 6.2%.

No company-specific news was reported about any of them, but the shift in the macro environment was enough to dampen enthusiasm for the stocks. And retail stocks generally fell this week: One benchmark for the industry, the SPDR S&P Retail ETF, was down by 3.6% as of Thursday’s close.

So what

Treasury yields, one of the best measurements for gauging  investors’ confidence in the U.S. economic recovery, continued to fall this week. The 10-year Treasury yield closed Thursday at 1.29%, down from 1.43% last Friday. This trend seems to reflect both a lack of confidence in the recovery and Wall Street’s belief that it’s becoming more likely that the Federal Reserve will begin to tighten its monetary policy. 

Those views suggest more difficult conditions ahead for department stores, which benefit when it’s cheap to borrow. These retailers relied on their credit lines during the pandemic, and they are also counting on robust consumer spending continuing in the months ahead, especially during the key back-to-school and holiday shopping periods.

Meanwhile, the threat of the Delta variant continues to loom over the economy. For the U.S. as a whole, COVID-19 cases have begun to rise again, though only slightly, due to the spread of the variant in communities where vaccination rates remain low. Japan is also considered re-instituting a state of emergency and has banned spectators at the upcoming Summer Olympics. That’s another sign that a recovery in the international tourism market will take time, and more bad news for Macy’s. Tourists have traditionally accounted for 4% of the chain’s sales.

All three of these stocks have recovered from their pandemic era sell-offs, but they’re still on shaky ground, and are especially at risk if the recovery falters. The pandemic accelerated consumers’ transition away from brick-and-mortar retail to e-commerce, and also hastened the decline of shopping malls, both of which are headwinds for department stores. Macy’s has accelerated its store closing plans in recent years, and even Nordstrom has begun shuttering some of its full-line stores.

Now what 

In their fiscal first-quarter earnings reports, Kohl’s and Macy’s delivered much stronger results than expected, but Nordstrom’s quarter was more middling. While those results were largely good, the quarter may have been anomaly for these companies due to President Biden’s economic stimulus package, which passed Congress in March. Still, their profits are expected to return now that the U.S. economy has reopened.

Over the long term, these companies will need to find a way to manage their large brick-and-mortar operations even as greater shares of sales shift to digital channels. Some retailers, like Nordstrom, have been doing a better job of this than others.

For the near term, macroeconomic indicators are likely to have significant sway over these stocks, especially since a recovery in retail stocks already looks priced into them. Fiscal second-quarter earnings reports won’t be released until August, but keep your eye on the June retail sales report, which is due out next Friday, for the latest snapshot of the sector.

Related Posts

Malakoff Shares Fall After First-Quarter Loss
News

Malakoff Shares Fall After First-Quarter Loss

May 29, 2023
Shell Agrees to Pay $10 Million for Air Pollution at Massive New Pennsylvania Petrochemical Plant
News

Shell Agrees to Pay $10 Million for Air Pollution at Massive New Pennsylvania Petrochemical Plant

May 25, 2023
Do Not Call: States Sue Telecom Company Over Billions of Robocalls
News

Do Not Call: States Sue Telecom Company Over Billions of Robocalls

May 25, 2023
Wall Street Slides as Debt Worries Worsen
News

Wall Street Slides as Debt Worries Worsen

May 24, 2023
Load More
Next Post
The Outlook for Ocugen Stock Has Deteriorated Further

The Outlook for Ocugen Stock Has Deteriorated Further

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

POPULAR NEWS

CNH Industrial (NYSE:CNHI) Use Of Debt Could Be Considered Risky

CNH Industrial (NYSE:CNHI) Use Of Debt Could Be Considered Risky

April 14, 2021
CN Rail Stock Is So Undervalued That it’s Absurd

CN Rail Stock Is So Undervalued That it’s Absurd

May 2, 2021
Bitcoin Is Falling: Should You Buy the Dip?

Bitcoin Is Falling: Should You Buy the Dip?

May 3, 2021
Corus Entertainment 4Q Profit Falls

Corus Entertainment 4Q Profit Falls

October 22, 2021
US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

US Seeks to Fine Air Canada $25.5 Million Over Slow Refunds

June 17, 2021

EDITOR'S PICK

Is Avalara (NYSE:AVLR) Weighed On By Its Debt Load?

Is Avalara (NYSE:AVLR) Weighed On By Its Debt Load?

January 5, 2022
Is ViewRay (NASDAQ:VRAY) Using Debt Sensibly?

Is ViewRay (NASDAQ:VRAY) Using Debt Sensibly?

August 10, 2021
General Motors stock falls after autonomous-driving leader’s departure announced

General Motors stock falls after autonomous-driving leader’s departure announced

December 17, 2021
Fedex Corp (FDX) falls 0.71%

Fedex Corp (FDX) falls 0.71%

April 26, 2021

Stay Updated

Get breaking news delivered straight into your inbox

Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Rotten Tomato stocks is a wholly-owned subsidiary of Grainne Capital Limited.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Rotten Tomato Stocks cover the companies and markets that are declining, failing or headed for disaster. We help investors spot the down tends and recognize when something smells rotten.

RECENT POSTS

Malakoff Shares Fall After First-Quarter Loss

RLJ Lodging Trust (NYSE:RLJ) Short Interest Down 13.0% in May

Big Lots’ stock tumbles toward 32-year low after losses nearly double forecasts, dividend is suspended

POPULAR POSTS

Eversource Energy (NYSE:ES) Stock Price Down 2.8% Following Analyst Downgrade

ACV Auctions Inc. (NASDAQ:ACVA) Short Interest Down 8.5% in May

Is Cognizant Technology Solutions (NASDAQ:CTSH) A Risky Investment?

© Copyright 2023 RottenTomatoStocks. All Rights Reserved 

Disclaimer | Privacy Policy

No Result
View All Result
  • HOME
  • NEWS
  • NYSE
  • NASDAQ
  • OTC
  • TSX

© 2021 RottenTomatoStocks.com

error: Content is protected !!
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.