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Nordstrom and Fossil Group Pulled Down SPY for a 1.1% Loss

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SPY continued to fall by 1.1%

The SPDR S&P 500 ETF (SPY) and the Direxion Daily S&P500 Bull 3X ETF (SPXL) fell by 1.1% and 3.4%, respectively, on Friday, November 13, 2015. SPY continued its downtrend throughout the week. Its trailing five-day yield was -3.6%, while its trailing one-month return was -0.4% as of November 13.

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Retail sector performance

The SPDR S&P 500 ETF (SPY) was heavily weighed down by the consumer discretionary sector. The Consumer Discretionary Select Sector SPDR ETF (XLY) fell by 2.6% on November 13. The sector was hit hard by the sell-off in the retail industry due to its unimpressive corporate results and gloomy sales forecast for the year ahead of the holiday shopping season.

The graph below shows the stock price performances of retailers Fossil Group (FOSL) and GameStop (GME) since October 1, 2015.

Retail stocks at the bottom

Stocks at the bottom of SPY on November 13, 2015, were Fossil Group (FOSL), GameStop (GME), and Nordstrom (JWN). These stocks yielded -36.5%, -16.5%, and -15.0%, respectively, that day.

Fossil Group (FOSL) disclosed its third-quarter earnings on Thursday, November 12, which fell about 45% due to weak sales in the quarter. The company posted its third-quarter profit of $57.5 million or $1.19 EPS (earnings per share) against earnings of $103.7 million or $1.96 EPS for the same period last year.

FOSL has lowered its sales forecast, stating its current quarter sales may fall up to 16%. It has also entered into a definitive agreement to acquire Misfit for $260 million. FOSL stock fell the day after the agreement was signed.

GameStop (GME), a video game retailer, fell on Friday, November 13, after analysts at Pacific Crest downgraded the stock from “overweight” to “sectorweight.”

In the next article, let’s look at the performance of Nordstrom (JWN) as well as other component sectors of the SPDR S&P 500 ETF (SPY).

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