Macy’s and American Airlines Shares Fall, Dow Jones Holds on

Let me show you my No.1 Crypto INCOME SOURCE >>
CLICK HERE. Free Video

macy's dow jones

After four days of stock market recovery and gains on the Dow Jones Industrial Average and elsewhere, the markets are at risk of slipping back. Macy’s and American Airlines revised forecasts, sending their stock prices spiraling.

The Dow Jones, the overriding indicator of America’s largest companies, began to fall after nearly a week of recovery. That recovery had been fueled by hopes of a positive outcome for trade talks, Federal Reserve patience, and talks to resolve the government shutdown. The Dow has since rebounded and is holding on.

Dow Jones Industrial Average This Week | Source: TradingView

The drop was short-lived, but an increasing number of companies are revising sales and revenue forecasts, impacting their own share prices and the wider markets.

Macy’s Share Price Plunges 18%

Iconic department store chain Macy’s has reported weak 2018 holiday sales and revised its earnings forecast downward. The news sent the company’s share price plummeting over 18% already today.

Though many established stores and Macy’s online sales were up just over 1%, Macy’s says its sales “weakened” in mid-December relative to expectations. This led to today’s statement before trading opened on the New York Stock Exchange (NYSE) where the firm is listed. Macy’s predicts no net sales increase for 2018 and is revising sales growth from an expected 2.3% or more down to 2%.

Other retail stocks fell, too. J.C. Penney, Nordstrom, L Brands, and Kohl’s all fell between 7-9%.

Macy’s Share Price for the Last Year | Source: Trading View

American Airlines Cuts Profits, Shares Fall 8%

In a slew of revisions this week, the biggest airline in the U.S. has cut its profit forecast and issued revenue guidance.

American Airlines had predicted its key “revenue per available seat mile” metric would grow year on year up to 3.5%. Actual growth was 1.5% in the last quarter of 2018.

The airline stock fell more than 8% this morning and was followed by falls in the share price of Delta Air Lines, United Airlines, and Southwest Airlines.

American Airlines Share Price for the Last Year | Source: Trading View

With two important industry sectors hit hard with revisions, the markets have much to cope with today. Analysts are hopeful for short-term or little effects. Quincy Krosby, chief market strategist at Prudential Financial, told CNBC:

If the market can look past this, it will suggest that much of this has been backed in.

It’s not all bad for technology stocks today, as Bank of America has upgraded Twitter shares to “buy,” leading to strong gains on the opening bell.

Featured Image from Shutterstock. Price Charts from TradingView.


Get in FIRST as a FOUNDER >>
Claim a 220% BONUS... CLICK HERE

For More Latest & Breaking Cryptocurrency News

Leave a Reply