Stock Market News: Tesla, Dick’s Sporting Goods in focus, S&P cuts banks

MARKETS

Dick's Sporting Goods profits hit by retail theft

Shares of Dick's Sporting Goods tumbled after the retailer slashed its profit forecast following a 23% drop in profits amid a rising crime wave hitting multiple retailers.

Dick's Sporting Goods became the latest retailer to bemoan rising in-store thefts which cut into profits.

Last week both Target and Walmart echoed similar trends.

Macy's location

Macy's said on Tuesday it will not change its annual forecast while warning of weakened consumer demand for the second half of the year.

“We continue to see uncertainty in the macroeconomic environment. We are leveraging our robust data science tools to refine inventory composition, while reading and reacting to shifting consumer preferences to meet demand,” Macy’s CEO Jeff Gennette said in a statement.

“Looking ahead, we are committed to fortifying our core business and improving our customer experience,” he added.

BUSINESS-LEADERS

Macy's CEO Jeff Gennette to retire next year

Tony Spring, the current chairman and CEO of Bloomingdale's, will replace 61-year-old Jeff Gennette as chief executive of Macy's in February of next year.

On Wall Street, shares of Macy’s are falling in early trading on Tuesday, after losing roughly 36% since Jan. 1. Macy's also reaffirmed its 2023 sales expectations of $22.8 billion to $23.2 billion and adjusted full-year profit per share between $2.70 and $3.20.

The company posted adjusted earnings per share of 26 cents in the quarter ended July 29, beating expectations of 13 cents. Meanwhile, comparable sales for Macy's-owned and licensed stores fell 7.3%, compared with expectations of a 6.48% drop.

Reuters contributed to this post.

Lowe's store location

Lowe's beat Wall Street estimates for quarterly profit and posted a smaller-than-expected drop in comparable sales on Tuesday.

MARKETS

Home Depot, Lowe's stock downgraded on housing headwinds

Analysts at the Telsey Advisory Group downgraded Lowe’s and Home Depot stock amid a housing market that is weakened by falling home sales and mortgage increases.

Shares of Lowe's are up on Wall Street, after CEO Marvin Ellison said the company was confident in the mid- to long-term outlook for the home improvement industry.

Lowe's also maintained its 2023 sales and profit forecasts, while seeing growth across its "Pro-customer" business during the second quarter, which caters to professional builders, contractors rather than Do-It-Yourself customers.

Meanwhile, same-store sales at Lowe's slipped 1.6% over the second quarter, less than analysts' estimate of a 2.36% decrease, according to Refinitiv data. Its per-share earnings of $4.56 also surpassed predictions of $4.49.

Reuters contributed to this post.

MARKETS

Money market funds hit record as investors jump at 5% returns

The Fed's interest rate hikes have driven money market fund yields to their highest level in decades with balances at a record high as investors look to beat inflation.

As yields rise to 5%, a product of the Federal Reserve's rate hiking cycle, investors are pouring into money market funds to the tune of a record $5+ trillion seeking safety and none of the downsides that come with stock volatility.