Rally Fades After Retail Reports

Lowe's, Best Buy beat expectations, but their shares fall
By Newser Editors and Wire Services
Posted Nov 21, 2023 3:40 PM CST
Rally Fades After Retail Reports
Shoppers walk toward a Best Buy store at 5am Nov. 26, 2021, in Lone Tree, Colorado.   (AP Photo/David Zalubowski, file)

Wall Street's rally ran out of momentum Tuesday, per the AP, and stocks drifted lower a day after hitting their highest level since the start of August:

  • The Dow dropped 62.75 points to 35,088.29.
  • The S&P 500 slipped 9.19 points, or 0.2%, to 4,538.19, for just its third loss in the last 17 days.
  • The Nasdaq dipped 84.55 points to 14,199.98.

Retailers were mixed after several reported their earnings for the latest quarter and, more important, their forecasts for the upcoming holiday shopping season. Lowe's sank 3.1% despite reporting better profit for the latest quarter than analysts expected. Its revenue fell short of Wall Street's estimates, and it also cut its forecasts for revenue and profit over the full year. Sales for do-it-yourself projects have been lower than expected at the home improvement retailer. Best Buy dipped 0.7% after likewise beating analysts' expectations for profit in the latest quarter but falling short on revenue. CEO Corie Barry said demand from customers has been "more uneven and difficult to predict." Best Buy cut its forecast for revenue for the full year, along with some other financial measures.

On the winning side of Wall Street was Dick's Sporting Goods, which rose 2.2%. It delivered stronger profit and revenue for the third quarter than analysts expected, as customers both bought more at each transaction and made more total purchases. The sporting goods retailer raised its forecasts for full-year results. Retailers are closing out what's been a mostly better-than-hoped earnings reporting season for the summer. Companies in the S&P 500 are on track to deliver their first year-over-year growth in earnings per share in a year, according to FactSet.

(More stock market stories.)

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