Here's Why Retail Stocks Crashed Today — But Not Amazon, Wal-Mart

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Retailers are still having a tough go of it. And a recent IPO was the catalyst for Thursday's troubles. But there were a few notable exceptions, including ( AMZN ) and Wal-Mart ( WMT ).

[ibd-display-video id=2326830 width=50 float=left autostart=true]The nearly sectorwide slide came in the wake of J. Jill 's ( JILL ) late Wednesday warning that sales were lower than expected, cutting guidance. J. Jill, which came public in March at 13 a share, plunged 51% to 4.86 on the stock market today .

Retail groups were among the biggest losers out of the 197 industries that IBD tracks, including the two worst performers.

J.C. Penney ( JCP ) is hitting a fresh all-time low, falling 3.7%. Kohl's ( KSS ) briefly slipped below its key 50-day moving average for the first time since the start of September, retreating 2.1%.

Teen bargain-retailer Five Below (FIVE) is testing its buy point after clearing the 54.23 entry from a period of consolidation in late September, slipping 1.8% to 54.99.

Nike (NKE) dipped 0.4% after hitting a 2017 low intraday, as Bloomberg pointed out a 40% flash sale that one NPD analyst calls "unprecedented."

Ulta Beauty (ULTA) is tumbling following a downgrade from Cleveland Research to neutral from buy, citing an expected slowdown in cosmetics and a rise in promotions. Ulta plunged 8.5% to an 18-month low.

Upscale housewares chain Williams-Sonoma (WSM) retreated 3.6% on its own downgrade.

Foot Locker (FL), Gap (GPS) and Macy's (M) were also significant losers, closing down 4.6%, 4.3% and 1.1%, respectively.

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Amazon, meanwhile, hit a two-month high, rising 0.6% as it works on a flat base. And Wal-Mart, increasingly lauded for its e-commerce efforts over the last year or so, advanced 0.4%. Wal-Mart has surged 9% this week, just beyond a buy range after breaking out Tuesday on a bullish online sales forecast and $20 billion buyback.

Wal-Mart is increasingly seen as the brick-and-mortar retailer most likely to hang with Amazon as many traditional chains fall further behind and risk going out of business.

Target (TGT) was another winner Thursday. Shares rose 1.8% after retaking their 200-day line on Wednesday and their 50-day on Tuesday.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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