Wall Street saw a mixed bag Wednesday morning, with Nasdaq futures showing strength, but several individual stocks took a significant beating in pre-market trading. The biggest story was the dramatic fall of Macy’s (M), sending ripples through the retail sector.
Macy’s Misses the Mark, Shares Plummet:
Macy’s reported third-quarter financial results that fell short of expectations, prompting a sharp downward revision of its full-year 2024 earnings per share (EPS) outlook. The company now anticipates 2024 sales between $22.3 billion and $22.5 billion, slightly better than prior guidance but below the consensus estimate of $22.42 billion. Even more concerning, the projected adjusted EPS of $2.25 to $2.50 significantly undercuts previous guidance ($2.34 to $2.69) and the consensus forecast of $2.73. This includes the impact of an accounting error. The projected comparable sales change for 2024 is also weaker, ranging from down 1% to flat compared to the previous expectation of a decrease between 0.5% and 2%. This news triggered an 11.2% drop in Macy’s shares, pushing the price down to $14.84 in pre-market trading.More Pre-Market Losers:
Macy’s wasn’t alone in its pre-market struggles. Several other companies faced significant declines, indicating a broader sense of caution in the market.*
ImmunityBio (IBRX):
Announced a $100 million share offering at $3.00 per share, leading to a 29.4% plunge in its stock price to $3.26.*
Acelyrin (SLRN):
Disappointing Phase 2b/3 clinical trial results for its drug Izokibep, which failed to meet primary and secondary endpoints, resulted in a 13.8% drop to $3.4999.*
Dave & Buster’s (PLAY):
Reported worse-than-expected third-quarter earnings and sales figures, causing a 14.1% decline to $31.62, with multiple analysts downgrading the stock.*
Bausch + Lomb (BLCO):
Suffered a 12.4% decrease to $18.10 after Citigroup downgraded the stock from Buy to Neutral and lowered its price target.*
Otter Tail Corporation (OTTR):
Experienced an 8.4% decline to $71.87.*
Super Micro Computer (SMCI):
Dipped 6.1% to $38.01, despite CEO Charles Liang’s assurances against delisting from Nasdaq.*
Hershey (HSY):
Saw a 5.1% decrease to $177.50.These pre-market movements highlight the volatility in the market and underscore the importance of careful analysis before making investment decisions. The downward trend across several sectors warrants close attention from investors as the trading day progresses.
