Diamonds and Dogs
Nordstrom (JWN) is breaking out. The high-end department store chain is up 11% to new highs following better than expected earnings. Nordstrom easily beat estimates as revenues rose 7.1% year over year to $3.98 billion. Comparable sales increased 4.0% verse estimates of just 1%. The company also raised guidance for the full year. Founded in 1901 as a shoe store in Seattle, Nordstrom today operates 372 stores in 40 states, including 122 full-line stores in the U.S. and Canada; 239 Nordstrom Rack stores.
The chips are down. After a stellar run, the semiconductor stocks are coming under pressure as demand softens. Nvidia (NVDA) is down 4% following earnings. Nvidia actually beat earnings estimates, but then lowered guidance for the current quarter due in part to weakening demand from the cryptocurrency industry. Chip equipment maker, Applied Materials (AMAT) is also down 7% following strong earnings, but lower guidance. The question remains is this just softness in demand or a cyclical turn in demand?