Macy’s Plunges 17.68%: Are US Retailers in Real Trouble? - CCN
Crypto Coins News - Fri 11 Jan 20:43 GMT

Macy’s Plunges 17.68%: Are US Retailers in Real Trouble? - CCN

With an unprecedented 17.68 percent on the day, Macy’s may have possibly fueled the short-term decline of all retailers in the U.S.

  Following the plunge in the stock price of Macy’s, other major retailers in the likes of Target have started to demonstrate a lack of momentum from the strong corrective rally the U.S. stock market experienced in early January.

  What drove the abrupt plunge in the stock price of Macy’s, the largest single-day drop in the company’s history, could have been unreasonably high expectations of investors in the performance of retailers during the holiday season, from Christmas to New Year’s Eve.

  Investors failed to recognize that many retailers, including major conglomerates in the U.S., often sell most of their shelved products with a heavy discount during the seven-day holiday season.

  Some analysts worry that the biggest single-day drop in the stock price of Macy’s could initiate a domino effect and impact most of the major retailers in the U.S. market in the coming weeks.

  During a period in which the strongest companies in the U.S. like Apple are struggling with margin misses and consumers are feeling less compelled to purchase products in general — possibly due to the volatile stock market and uncertainties surrounding the economy — department stores that do not specifically lead in a certain area in retail could continue to face challenges.