Frankfurt, New York Wall Street is troubled by cloudy outlooks from US retailers. The leading indices Dow Jones, Nasdaq and S&P 500 fell by up to one percent when they opened on Wednesday. “The problem is, everyone is expecting a very strong and robust Christmas shopping season,” said analyst Ken Mahoney, head of wealth manager Mahoney. “Anything that falls behind will be a disappointment.”
The mood among investors hit Gap’s lowered sales and profit targets. The fashion company is suffering from higher shipping costs and lengthy factory closures in Vietnam. The company obtains around 30 percent of its products from the East Asian country. Gap reported adjusted quarterly earnings of 27 cents per share, well below the 50 cents forecast by analysts. At the same time, the company also lowered its forecast for the full year.
The problems are temporary, wrote analyst David Swartz from the research house Morningstar. Gap stocks nonetheless fell nearly 23 percent to a 13-month low of $ 18.16.
With a minus of almost 25 percent, the Nordstrom papers were even threatened with the largest daily loss in the company’s history. The department store chain also warned of bottlenecks in the important Christmas business. In addition, the profit in the past quarter was 64 million dollars below expectations. The planned modernization of the business is taking longer and more expensive than expected, complained analyst Stephanie Wissink of the Jefferies investment bank. It therefore downgraded the Nordstrom title to “Hold” from “Buy”.
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Strong quarterly results from Dell and HP, however, encouraged investors to invest in computer manufacturers. The shares of the two companies will rise by four and a good ten percent, respectively. Despite delivery bottlenecks for some components, both Dell and HP presented quarterly results above expectations, praises analyst Krish Sankar from the asset manager Cowen. The further prospects are also good.
US stock market expert Koch: “Wall Street experiences a price thunderstorm before Thanksgiving”
US investor Cathie Wood used the 14.7 percent loss in Zoom shares on Tuesday to buy almost 650,000 shares with her Ark fund. Her value on a closing price basis: $ 133 million. The papers of the video conferencing provider rose by one percent on Wednesday,
Further individual values in focus
Deere: The US tractor manufacturer recorded increasing demand for its agricultural machinery in the third quarter thanks to higher harvest and livestock prices. In the current year, the prices of corn and soybeans rose, which increased the demand for tractors and combines. Deere stock rose more than six percent.
VMware: The software company beat forecasts by 18 cents with adjusted quarterly earnings of $ 1.72 per share. In addition, VMware also issued an optimistic forecast for the current quarter, as global demand for cloud computing services increases. The share was able to gain 1.3 percent.
Jack In The Box: The share of the restaurant chain was downgraded from “Buy” to “Hold” by the analysis company Stifel Financial. A number of factors such as poor comparable restaurant sales served as the reason for this. Jack-In-The-Box stock fell 2.6 percent.
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