Tuesday saw a turbulent session on Wall Street, with market participants trying to find new direction as they continued to evaluate geopolitical events over the weekend. Many investors remained focused on the energy markets, where crude oil prices steadied following Monday's big move higher. Yet even while some sectors benefited greatly from oil's surge, some companies could face bigger challenges. Nordstrom (NYSE: JWN), Chesapeake Energy (NYSE: CHK), and Boston Beer (NYSE: SAM) were among the worst performers. Here's why they did so poorly.
Shares of Nordstrom dropped 10% as investors in the upscale retailer tried to measure what (if any) impact recent events affecting the retail industry could have on its revenue and earnings. Traditionally, department store retailers have suffered when their customers faced threats to their discretionary income, and one of the most obvious things that can take money out of shoppers' wallets is a rise in gasoline prices. Yet it's unclear whether Nordstrom shoppers, who tend to be better off financially than those who shop at rival retailers, will really change their behavior simply because prices at the pump rise. Regardless, Nordstrom has tried to respond to competitive pressures from both brick-and-mortar and online retail rivals, and it has more work to do before shareholders will feel completely confident about its prospects.
Image source: Nordstrom.
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Source: Motley Fool
(September 17, 2019 - 4:35 PM EDT)
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