DKS - Why These 2 Well-Known Stocks Are Dragging the Whole Market Down
2023-08-22 13:12:57 ET
Tuesday was a turbulent day on Wall Street, with most major market indexes giving up early gains by midday. Some key benchmarks posted fairly substantial declines, in large part because of macroeconomic concerns that are accompanying the highest interest rates in the bond market in more than 15 years.
High rates often cause economic pressure, and when consumers no longer have the capacity to spend, it can have a huge downward impact on retail stocks . Two well-known companies in the retail space, Dick's Sporting Goods (NYSE: DKS) and Macy's (NYSE: M) , fell sharply on Tuesday as investors parsed their respective financial reports. What happens to these two companies for the remainder of the year could be a signal of the strength or weakness of the entire consumer economy and has huge implications for stock investors.
Shares of Dick's Sporting Goods were among the worst performers in the stock market, falling 24% early Tuesday afternoon. The sporting goods retailer reported fiscal second-quarter financial results for the period ended July 29, and investors weren't pleased with the numbers Dick's put up or the forecast it made for the rest of the year.
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Why These 2 Well-Known Stocks Are Dragging the Whole Market Down