FRG - Hot Stocks: Semiconductor stocks fall; KSS hits 52-week low; CPNG climbs on upgrade; ZIM drops on downgrade

Stocks posted solid gains on Friday, as Wall Street experienced light volume headed into the long holiday weekend. Investors overcame some early jitters to send the Dow and S&P 500 both higher by more than 1%.

While the general attitude on Wall Street had a positive tinge, semiconductor stocks suffered selling pressure. Weak guidance from Micron dragged down names like Nvidia ( NVDA ), Advanced Micro Devices ( AMD ), Intel ( INTC ), Lam Research ( LRCX ) and KLA Corp. ( KLAC ).

Kohl's ( NYSE: KSS ) represented another notable loser on the session. The stock lost about a fifth of its value and reached a new 52-week low after the retailer ended a strategic review and provided a weak forecast.

Meanwhile, ZIM Integrated Shipping Services ( ZIM ) also showed weakness, dragged down by a bearish note from Bank of America.

Analyst commentary had a major impact on Coupang ( CPNG ) as well, although in the opposite direction. The stock rallied in the wake of an upgrade.

Sector In Focus

Weak guidance included in Micron's latest earnings report put pressure on certain tech sectors. Semiconductors experienced some of the most concentrated selling, as investors worried about the impact of a slowing economy.

In its latest report, MU provided quarterly revenue guidance that was below what analysts had predicted. The firm's CEO pointed to slumping industry demand, stemming from recent weakness in PCs and smartphones.

Given this outlook, semiconductor stocks generally moved lower. Nvidia ( NVDA ) and Advanced Micro Devices ( AMD ) both fell around 4%, while Intel ( INTC ) retreated about 3%.

There were even steeper declines in chip equipment makers. Lam Research ( LRCX ) and KLA Corp. ( KLAC ) both fell more than 7%.

Standout Gainer

A bullish analyst comment sparked buying in Coupang ( CPNG ). The stock rallied 17% after Credit Suisse upgraded the South Korea-based e-commerce company.

The Swiss bank raised its rating on CPNG to Buy from Neutral, saying that a sales slowdown has now been priced into the stock. Meanwhile, Credit Suisse argued that the company has "monetization initiatives underappreciated by the market."

Thanks to the upgrade, CPNG posted an advance of $2.29 and finished the session at $15.04.

The stock reached a 52-week low of $8.98 in the first half of May. Even though the stock has come well off that level in recent weeks, CPNG remains about 48% lower for 2022. The stock has fallen about 63% in the past year.

Standout Loser

ZIM Integrated Shipping Services ( ZIM ) dropped more than 8% after Bank of America turned bearish on the stock, downgrading it on weaker U.S. demand.

Bank of America lowered its rating on ZIM to Underperform from Buy . At the same time, the firm slashed its price target, taking the prediction to $40 from its previous level of $79.

ZIM retreated $3.95 to close at $43.28. The slide added to downward pressure that marked much of June. Shares have lost more than a third of their value in the past month. Meanwhile, the stock is coming off a 52-week high of $91.23 reached in mid-March.

Notable New Low

Kohl's ( KSS ) endured a massive selling spree after it revealed a disappointing ending to its strategic reviews. With the retailer also providing a soft sales forecast, shares plummeted almost 20% and reached a new 52-week low.

The department store chain said it has ended its strategic review without reaching an agreement to sell itself, despite discussions with more than two dozen possible deal partners. The firm was unable to reach a buyout deal with its top bidder, Franchise Group ( FRG ).

Meanwhile, KSS also issued a cautious forecast, saying it has seen softening consumer spending lately. The firm now thinks its sales will drop by a high-single-digit percentage in Q2.

Weighed down by the double hit of weak guidance and a lack of success in its sales process, KSS plunged to an intraday 52-week low of $27.65 early in the session. It recovered somewhat by the closing bell, ending the day lower by $7.01 at $28.68.

KSS has seen selling pressure since early May, as hope of a buyout deal started to dim. Shares have fallen more than 50% since the start of May.

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