Today is Wednesday, November 24, 2021.
Nordstrom's Labor Cost Pressure
Shares of Nordstrom (NYSE: JWN) dropped 23.18% in after-hours trading on Tuesday after the luxury department store posted mixed financial results.
Financials: Nordstrom reported earnings per share of 39 cents, well below Wall Street estimates. However, its revenue of $3.63 billion was slightly better than expected.
The Bad: The company reported a lot of problems. Net sales for Nordstrom Rack, its off-price department store, fell 8% compared to the same quarter in 2019. Both earnings and general expenses were severely impacted by “labor cost pressures” as well as fulfillment issues.
The Good: Gross profit as a percentage of net sales increased due to fewer markdowns and leverage from higher net sales.
Final Thoughts: These were disappointing earnings for Nordstrom, especially days before Black Friday. It is really bad when you compare the company to other retailers who recently posted stronger earnings, including Macy’s (NYSE: M).
Notable Earnings Today: Deere (NYSE: DE), Futu Holdings (Nasdaq: FUTU), Cheetah Mobile (NYSE: CMCM).
Notable IPOs Today: AeroClean Technologies, Inc. Common Stock (Nasdaq: AERC), mCloud Technologies Corp. Common Shares (Nasdaq: MCLD).
Notable Equity Crowdfunding Campaigns Ending Today: The Hudson House & Distillery (MainVest), Transparent Path (NetCapital), Token Metrics (Wefunder).
Notable Economic Events Today: Jobless claims (8:30 a.m. ET), GDP (8:30 a.m. ET), Cord durable goods orders (8;30 a.m. ET), Goods trade balance (8:30 a.m. ET), New home sales (10:00 a.m. ET), Michigan consumer sentiment (10:00 a.m. ET), Personal spending (10:00 a.m. ET), Crude oil inventories (10:30 a.m. ET), FOMC minutes (2:00 p.m. ET).
eToro Delists 2 Cryptos in the U.S.
Traders in the U.S. won’t be able to buy new Cardano or Tron on eToro, the cryptocurrency exchange wrote in a blog on Tuesday.
Details: U.S. users will no longer be able to open new positions in these cryptos on the platform or receive rewards for them. This new rule starts on December 26.
Fine Print: Users will still be able to close existing positions in Cardano and Tron after that date and no one will be forced to sell.
Numbers: The price of Cardano fell over 6% on Tuesday and Tron dropped over 2%. Prices for both cryptos are up in 2021.
Final Thoughts: U.S. users who like these two coins will have to go to other platforms.
Should Equity Crowdfunding Platforms Do More to Protect Investors?
Equity crowdfunding, which allows investors to buy stakes or provide debt funding to startups and real estate projects, is a great investment vehicle. However, it can carry some risks, including the possibility of scams.
Recent News: The U.S. Securities Exchange Commission (SEC) announced in September that it was bringing an enforcement action against people behind an equity crowdfunding campaign on the grounds of fraud, the first of its kind in equity crowdfunding.
More: TruCrowd, the equity crowdfunding platform behind this particular campaign, is also being accused by the SEC for allowing the alleged scam to happen.
Potential Solution: Indiegogo, a rewards and donation-based crowdfunding platform, announced this month that it will create an internal review board to screen crowdfunding campaigns.
Final Thoughts: Should equity crowdfunding platforms consider adding internal review boards in order to stop potential scams?
Trends to Watch
Not a Comedian: JPMorgan CEO Dimon jokes his bank will outlast China's Communist Party (Reuters)
Getting Out: Hedge Funds Bailing on High-Beta Stock Picks at a Breakneck Clip (Bloomberg)
Dollar, 25-Cent Tree: Dollar Tree is raising prices 25 percent to $1.25 (The Washington Post)
Dude, You’re Getting Good Earnings: Dell Technologies 3Q Revenue Climbs on PC Sales Boost (MarketWatch)
Difficult: The World’s Largest Bitcoin Fund Is Troubled. Here’s Why. (Barron’s)
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