Macy's stock is lower after Eaton Vance said department stores are 'heading toward zero'
U.S. stocks are lower today, taking in losses as the tech sell-off resumes. Among the stocks feeling the heat are electric vehicle maker Tesla Inc (NASDAQ:TSLA), mining stock Tahoe Resources Inc (NYSE:TAHO), and department store name Macy's Inc (NYSE:M). Here's a quick look at what's moving shares of TSLA, TAHO, and M.
Tesla Stock Tumbles Into Bear-Market Territory, Options Volume Soars
Tesla stock is down 6% to trade at $307.88, setting the car manufacturer up for its worst week in 10 months. Weighing on the stock are concerns about the Model S, after the Insurance Institute for Highway Safety gave the vehicle a lower-than-expected "Acceptable" safety rating. This comes just a day after delivery concerns hit the stock. Since hitting its all-time high of $386.09 on June 23, the stock has plunged roughly 20% -- sending TSLA shares into bear-market territory.
Tesla stock volume is pacing for an annual high, and in the options pit, traders are in a frenzy. Over 350,000 contracts have traded today, twice the normal amount, and on pace for the 99th percentile of its annual range. Digging deeper, about 162,000 calls and 192,000 puts have been traded, with much of the attention directed toward weekly 7/7 options.
Tahoe Resources Reeling After Court Ruling
Tahoe Resources stock is down 32% to trade at $5.65, and just hit a record low of $5.12, after after the company's mining license in Guatemala was suspended. Tahoe plans to appeal the suspension, which was brought down by the lower Guatemalan court. No fewer than six brokerage firms slashed their price targets on TAHO, and BMO, National Bank of Canada, and TD Securities all downgraded the stock to the equivalent of "hold." Tahoe Resources is currently short-sale restricted, and has given up 39% year-to-date.
Macy's Stock Slips; Eaton Vance Warns On Department Stores
Macy's stock is down 2% to trade at $23.06, after an Eaton Vance officer opined that
department stores "are heading toward zero," and will "continue to struggle under the threat of Amazon," which recently announced a
Prime fashion service. It's already been a rough year for M stock, which has shed nearly 36% year-to-date, and recently fell to a near seven-year low of $21.51 on June 22.
Most analyst are already wary of M stock. Of the 12 brokerages covering Macy's stock, nine rate it a "hold." Short sellers seem to echo this, with short interest increasing by a whopping 95% over the last two reporting periods.