As the pull back in consumer spending continues to impact retailers, the Yahoo Finance Live team takes a look at shares of Macy's, Dollar General, and Nordstrom. Shifting to the auto industry, EV maker Lucid's stock dropped after announcing a new stock offering. On the AI front, C3.ai shares plunged after the company issued a disappointing outlook.
SEANA SMITH: Look at some of those individual movers. Well, Macy's closing the day slightly in the green, looking at gains of just about 1%, despite reporting results that did miss some expectations. The retailer also slashing its full year outlook amid growing concerns about the consumer.
Dollar General shares sliding there on the day as they also lowered their full-year forecast for both sales and earnings. Earnings per share now projected to decline as much as 8% on the year. Looking at losses of just about 20%. So clearly, consumers pulling back here.
But I also want to highlight what we saw play out with Nordstrom today because that was a bright spot in retail. And now it's very important to put this all in context. Clearly Nordstrom has been struggling now for quite some time. But when it comes to their results, they actually did relatively well. Shares closing up nearly about 5% today.
And looking at these results here, better than expected first quarter earnings, held its full year outlook despite what some of those executives said with it being a very uncertain and challenging macroeconomic backdrop.
- I think they're able to sort of better manage their inventory there. Their focused on a more of a higher end consumer. Maybe that has something to do with it as well. But I think it's more about that inventory management control.
Also, the Nordstrom Rack business, focusing more on that, I know a lot of people, including my mom who are big fans of that business.
SEANA SMITH: I'm one of them.
- I mean, I shouldn't say me too as well. So I think they have the right kind of mix there for that for what's going to happen with the consumer down the line. Obviously, these lower-- lower low income names like Dollar General, Dollar Tree kind of hurting right now, as people go to Walmart and places like that so.
Also, I'm thinking here watching Lucid stocks sliding today after the EV maker announced another stock offering worth $3 billion via private placement, an affiliate of the Saudi Public Investment Fund. Now, the Saudis already own 60% of the company before this move. So it wasn't that unexpected that they would raise money from them.
And people had expected that they would probably need more money because they probably have I think enough money to go through 2023, 2024, as they ramp up their new vehicles, the Gravity SUV, things like that. So not surprising there.
But I think for investors it's still a concern that these pure play non-legacy EV makers need so much cash to just keep going to compete with Tesla, compete with Ford and GM. It's going to be a long road ahead for them, but they have the right product.
SEANA SMITH: Very long road ahead for them. And also the consensus out here on the Street that maybe this fundraising really reduces those expectations that Lucid could potentially go private at least in the near term. Morgan Stanley was out making some comments on the heels of this news, saying that the ability to access such a substantial amount of equity financing is unique.
Also, provides just greater time in order for Lucid to really explore some of the changes to their business that they need to make. Also, their cash position strategy required to potentially keep moving forward.
But you mentioned the fact that the company has been struggling so much. I think a lot of investors are just trying to figure out what exactly the future does look like here for Lucid.
Let's also take a look at one of the AI movers on the move today. It's really been on the move here for this year. But C3 AI reported its fourth quarter earnings last night after the bell. And despite beating expectations on both the top and bottom line, shares plunged today as the company's full year revenue outlook came in shy of Wall Street's expectations.
This comes after a massive, massive run off in the stock price since January 1st. But shares plunging their 2024 revenue forecast on the lighter side of what the Street was looking for. And that was enough to send shares down significantly lower today.
- Yeah, we're just seeing today the stock up 250% this year alone. So any little chance investors could take to sell this stock after a huge run up, I think they took it, and they were able to kind of do that as your catalyst for that big downdraft there.
I'm not an AI expert, but I feel like maybe there's more sort of juice behind the AI hardware plays like Nvidia and Marvell, as opposed to the software plays, which is sort of dominated by Google, Microsoft, and, of course, OpenAI, things like that. So I think maybe that's sort of what's going on here at play is more of a valuation, kind of, let's make take some money off the table right now.