The S&P 500’s top losers on December 27 were as follows:
Macy’s (M), a premier omnichannel retailer, was the top loser of the S&P 500 on December 27. After regaining strength in the last week, Macy’s started this week on a stronger note and surged to more than a seven-month high on Tuesday. But the stock fell on December 27 amid decreased risk appetite.
Macy’s started this holiday season strong with solid sales data during Thanksgiving and raised market expectations towards the end of the holiday season. The prices of retail stocks surged higher on Tuesday following reports of increases in holiday sales. As per MasterCard Spending Pulse, the holiday sales recorded growth of 4.9% this year. This made Macy’s surge to its highest levels since May 11, 2017, on Tuesday.
But the prices pulled back on Wednesday amid profit booking at elevated levels and doubts about whether this holiday season can offset long-term challenges Macy’s faces such as competition from online retailers. On the other hand, the replacement of Macy’s CEO and executive chair Terry Lundgren could improve investor confidence. On December 27, Macy’s fell 4.5% and closed the day at $25.64. In the next part of this series, we’ll discuss the performance of Chesapeake Energy (CHK) and Viacom (VIAB) on Wednesday.