TheStreet's J.D. Durkin brings the latest business headlines from the floor of the New York Stock Exchange as markets open for trading Monday, December 11th.
Full Video Transcript Below:
J.D. DURKIN: I’m J.D. Durkin - reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Investors are looking ahead to a key week on Wall Street with inflation data, the Fed meeting kicking off Tuesday with the final interest rate decision of the year, and retail sales data on Wednesday.
Wall Street is widely expecting the central bank to hold interest rates steady after doing so for several consecutive months. Investors will be watching Federal Reserve Chair Jerome Powell’s comments closely for signs of potential rate cuts in the near future.
In other news - Macy’s might be getting a new owner. Arkhouse Management and Brigade Capital Management have reportedly offered to buy the retail giant for $5.8 billion. News of the tentative takeover sent shares of Macy’s soaring. The company’s stock is down roughly 13% since the start of 2023.
Like many other traditional brick and mortar retailers, Macy’s sales have slumped due to increased competition from Amazon. Back in June, the company had to cut its annual profit and sales forecasts. Sales at stores that have been open for at least one year were down 7% in the first three quarters of its current fiscal year.
On its most recent earnings call, CEO Jeff Gennette said, “The U.S. consumer, particularly at Macy’s, pulled back more than we anticipated,” and said customers were reallocating their spending towards food and other essential items.
The 165-year-old retailer has 722 locations - which include Macy’s, Bloomingdale’s, and Blue Mercury stores. But in an effort to cut costs, the company has closed 125 locations since 2020.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m J.D. Durkin with TheStreet.
