Stocks making the biggest moves midday: Macy's, Citigroup, Canada Goose, CBS & more
Check out the companies making headlines midday on Wednesday:
Macy's — Shares of Macy's plunged nearly 15% and hit a new 52-week low after the retailer missed Wall Street's expectations for its fiscal second quarter. The company reported 28 cents in earnings per share on $5.546 billion in revenue, while analysts had expected 45 cents per share on $5.542 billion in revenue, according to Refinitiv. Macy's also lowered its full year earnings guidance to between $2.85 and $3.05 a share, down from a range of $3.05 to $3.25.
Canada Goose — Shares of winter coat maker Canada Goose tanked 9% after the it reported quarterly gross margin that missed analysts estimates. Gross profit margins fell to 57.5% in the first quarter from 64% in the year ago period, and missed analysts' estimate of 61.6%. The company, which is breaking into lighter clothes like rain jackets, is selling the products, however they are not as profitable as the company's usual $1000 parkas.
Bank stocks — Bank stocks took a big hit after a key part of the yield curve inverted on Wednesday, sending bond market's biggest recession signal. In such an environment, it would become more difficult for banks to make a profit lending money. Bank of America and Citigroup fell 4.7% and 5.4% respectively, while J.P. Morgan also dropped 4%. S&P 500 financials dipped into correction territory on an intraday basis.
Luckin Coffee — Shares of Luckin Coffee tanked more than 14% on the coffee chain's disappointing results in its first report as a public company. Luckin reported an adjusted quarterly loss of 48 cents per share, wider than the 43 cent consensus estimate.
Tilray — The cannabis company's stock dropped 14% after announcing a wider-than-expected second quarter loss. The company reported an adjusted loss per share of 32 cents on revenue of $45.9 million. Analysts had expected a loss per share of 25 cents on revenue of $41.1 million, according to Refinitiv. Tilray cited higher operating expenses due to growth initiatives.
CBS — Shares of CBS fell more than 6% after the company announced a finalized merger with Viacom. Some investors view the merger skeptically, with Bernstein downgrading CBS to underperform from market perform citing concerns about"shareholders inheriting Viacom's structural problems."
Chip stocks — Chip stocks came under pressure after the Wall Street Journal reported Chinese telecom giant Huawei helped African governments spy on their political opponents. Advanced Micro Devices tanked nearly 8% while Xilinx dropped more than 3%. The U.S. earlier this year blacklisted Huawei for national security concerns, halting its ability purchase U.S.-made chips.
— CNBC's Jesse Pound, Maggie Fitzgerald, Elizabeth Myong contributed reporting
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