Stocks fell on Wednesday, giving back some of the gains posted last week. The Nasdaq led the decline, down 1.5%. So far, the Dow has outperformed the other major averages, although it ended with a slight decline.
Select the parts of the product segment that contributed to the bottom line. Weak results from Target weigh in on the sector. Best Buy ( BBY ), Nordstrom ( JWN ), Macy’s ( M ), Kohl’s ( KSS ) and Gap ( GPS ) all fell sharply.
Meanwhile, earnings news fueled strong selling in Advance Auto Parts (NYSE: AP) and Chef of the Arts (TTCF).
On the other hand, Sportradar (SRAD) moved in the opposite direction following its financial figures. The stock gained 2 percent.
Sector In Focus
Target stores missed out on disappointing results and a cautious forecast for the holiday quarter from Target.
As part of that, Best Buy ( BBY ) fell nearly 9% after retail sales showed soft electronics sales. At the same time, Nordstrom ( JWN ) and Macy’s ( M ) both fell by about 8%. Kohl’s ( KSS ) fell 7%, while Gap ( GPS ) fell nearly 6%.
Standout Gainer
Sportradar (SRAD) received significant buying interest following the release of its quarterly results. Sales jumped 15% on average.
The Swiss-based company, which analyzes sports data for clients such as bookmakers and media companies, said Q3 adjusted EBITDA rose to €36.5M, compared to €20.9M last year. Revenue increased by 31%.
SRAD also raised its 2022 forecast.
Encouraged by the release of funds, SRAD rose $1.56 to close at $11.71. That added to recent gains, with the stock up 39% in the past month.
With Wednesday’s gain, shares hit their highest level since late August. However, SRAD remains 38% lower in 2022 as a whole and below the 52-week high of $24.54 seen at the end of last year.
Standout Decliner
Weighed down by a disappointing quarterly report, Advance Auto Parts (AAP) endured heavy sales, down 15%.
The auto parts retailer announced Q3 profit that came in below analysts’ consensus. Revenue was flat from the prior year at $2.6B, with comparable sales down 0.7%.
The company also lowered its 2022 profit forecast. AAP now sees adjusted EPS between $12.60 and $12.80, down from its previous target of $12.75-$13.25.
AAP ended trading Wednesday at $156.24, down $27.57 on the day. Shares also touched a 52-day low of $150.35. Overall, the stock has lost more than a third of its value since the end of 2021.
Popular New Low
The release of weak quarterly results sent Tattooed Chef (TTCF) soaring, and the stock fell to a new 52-week low. Shares fell 18% for the session.
The plant-based food company reported that it lost its most recent share even more than analysts expected. Meanwhile, revenue is down 8% from last year, resulting in a $54.1M figure lower than expected.
Looking ahead, the company lowered its financial forecast for the full year. At the same time, TTCF said that it “intends to raise additional debt or commercial capital in the near future.”
TTCF fell to a 52-day low of $2.43 in early trading. It recovered slightly from there but finished at $2.74, a return of 61 cents for the share.
A further weak decline has recently been seen. Shares are down nearly 39% in the past month. The stock, which reached a 52-week high of $19 set late last year, is down 82% in 2022 as a whole.
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