Stocks to Watch
Retail stocks are experiencing a significant drop, with Dick's Sporting Goods falling over 20%, Macy's and Kohl's dropping over 10%, and Nordstrom, Gap, Best Buy, and Victoria's Secret all down over 5%. Nike shares are currently on their longest-ever losing streak. The reasons behind these moves include delinquent payments on credit cards and inventory shrinkage.
The Economy
The overall stock market performance was not as poor, with the S&P 500 index dropping just 0.3% and the Nasdaq Composite slightly higher. The Dow Jones Industrial Average shed 174 points. Hasbro, the toy-maker, led the S&P 500 with a gain of over 7% following an analyst upgrade.
Other Significant Events
The Arm IPO, set to be the largest new listing this year, will test investors' AI conviction. The market frenzy around generative artificial intelligence has pushed up stocks related to AI, but it remains uncertain if buyers will pay up for Arm's supposed AI prospects. Google is facing a tough advertising market and the need to invest in expensive technology for its AI ambitions. Parent company Alphabet's shares have risen since reporting second-quarter results, but its advertising revenue is expected to increase by just 5% this year.
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