Macy’s Inc (NYSE: M)
Macy’s is off to an incredibly rough day in the market today. In pre-market trading, the stock took a massive dive. Now, just minutes into the trading session, we’re seeing just how big the losses are. Unfortunately, the stock seems to be only falling further. Below, we’ll talk about what we’re seeing in the market, why, and what we’ll be watching for with regard to $M ahead.
What We’re Seeing From $M
As mentioned above, Macy’s isn’t having the best of days in the market today. After releasing a business update in pre-market, the stock started to fall dramatically. When the opening bell rang, we saw a continuation of declines, pushing the stock further and further into the abyss. Currently (9:40), $M is trading at $30.99 per share after a loss of $4.85 per share or 13.53% thus far today.
Why The Stock is Falling
As soon as my trading tools alerted me that Macy’s was taking a dive, I decided to do some digging to see exactly what was causing the movement. While it takes quite a bit of digging sometimes, this wasn’t one of those times. In fact, the story pretty much jumped out at me. The declines are being caused by news of layoffs.
Early this morning, in pre-market trading hours, the company made an announcement. In the announcement we learned that layoffs were happening, and that there were going to be quite a few of them. In fact, $M will be laying off more than 6,000 employees in this most recent run. This news comes along with Sears announcing that it will be closing 150 stores. On top of that, yesterday the UK retail sector proved to struggle.
With all of this happening, one has to wonder if the retail sector is realizing issues as a result of inflated economic conditions. Central banks are artificially lifting economic figures. However, major economic indicators like the retail sector are showing signs of trouble.
What To Watch Ahead
Moving forward, it seems as though we’re going to be seeing quite a bit of movement in the retail sector. Considering what we’re seeing today with Macy’s and Sears, combined with what we saw in the retail sector in the UK yesterday, chances are that there’s going to be plenty more to talk about ahead.
What Do You Think?
What do you think retail sector declines tell us about supposedly improving economic conditions? Join the discussion in the comments below!