Stocks retreated on Wednesday, giving back some of the gains posted last week. The Nasdaq led the decline, falling by 1.5%. Meanwhile, the Dow held up better than the other major averages, although it still ended with a fractional decline.
Select parts of the retail sector contributed to the downward pressure. Weak results from Target weighed on the sector. Best Buy ( BBY ), Nordstrom ( JWN ), Macy's ( M ), Kohl's ( KSS ) and Gap ( GPS ) all recorded notable declines.
Meanwhile, earnings news prompted massive selloffs in Advance Auto Parts ( NYSE: AAP ) and Tattooed Chef ( TTCF ).
On the upside, Sportradar ( SRAD ) moved in the opposite direction following its financial figures. The stock posted a double-digit percentage gain.
Sector In Focus
Selected retail stocks lost ground in the wake of disappointing results and a cautious holiday-quarter forecast from Target.
As part of this, Best Buy ( BBY ) dropped almost 9% after retail sales data indicated soft electronics sales. At the same time, Nordstrom ( JWN ) and Macy's ( M ) both declined by about 8%. Kohl's ( KSS ) slipped 7%, while Gap ( GPS ) dropped about 6%.
Standout Gainer
Sportradar ( SRAD ) received significant buying interest following the release of its quarterly results. The stock jumped 15% on the news.
The Switzerland-based firm, which analyzes sports data for clients like bookmakers and media companies, reported Q3 adjusted EBITDA that surged to €36.5M, compared to €20.9M last year. Revenue jumped by 31%.
SRAD also raised its revenue forecast for 2022.
Boosted by the earnings release, SRAD climbed $1.56 to close at $11.71. This added to a recent upswing, with the stock rising 39% in the past month.
With Wednesday's gain, shares reached their highest level since late August. However, SRAD remains 38% lower for 2022 as a whole and well below the 52-week high of $24.54 seen late last year.
Standout Decliner
Weighed down by a disappointing quarterly report, Advance Auto Parts ( AAP ) endured intense selling pressure, slumping by 15%.
The auto supplies retailer announced a Q3 profit that came in well below analysts' consensus . Revenue was flat with the previous year at $2.6B, with comparable store sales that dipped 0.7%.
The company also lowered its profit forecast for 2022. AAP now sees adjusted EPS between $12.60 and $12.80, down from its previous target range of $12.75-$13.25.
AAP finished Wednesday's trading at $156.24, a decline of $27.57 on the day. Shares also touched an intraday 52-week low of $150.35. Overall, the stock has lost more than a third of its value since the end of 2021.
Notable New Low
The release of weak quarterly results sent Tattooed Chef ( TTCF ) spiraling, with the stock slumping to a new 52-week low. Shares crashed 18% on the session.
The plant-based food company reported a loss for its latest quarter that came in much wider than analysts had projected. Meanwhile, revenue dropped 8% from last year, leading to a lower-than-expected total of $54.1M.
Looking ahead, the company reduced its revenue forecast for the full year. At the same time, TTCF reported that it "intends to raise additional debt or equity capital in the near future."
TTCF plunged to an intraday 52-week low of $2.43 shortly after the start of trading. It recovered a bit from there but still finished at $2.74, a retreat of 61 cents on the session.
The decline extended weakness seen recently. Shares have fallen about 39% over the past month. The stock, which reached a 52-week high of $19 set late last year, has fallen 82% for 2022 as a whole.
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Hot Stocks: Retail stocks sag; AAP, TTCF plunge on earnings; SRAD soars