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Nordstrom (JWN – 18-11/16) operates upscale department stores throughout the United States. JWN shares seem to be experiencing the "sell on the rumor, buy on the news" phenomenon, as the equity has posted a nearly nine-percent gain following a slew of brokerage downgrades.
Last night after the close, the retailer held a press conference wherein officials announced the resignation of the firm's Chairman and Chief Financial Officer. Two members of the Nordstrom family were appointed to fill the roles. This morning, the stock's rating was lowered at Merrill Lynch (MER - 71-5/8), Bear Stearns (BSC - 68-5/16), and Credit Suisse/First Boston.
Despite this news, JWN has been trending higher throughout the session, although it is presently encountering resistance at its overhead 10-day moving average. The stock is still well below its significant intermediate-term and long-term moving averages. Even with today's rise, the shares remain 45 percent away from their annual peak reached in mid-April.