Nordstrom Stock Plunges After Forecast Cut

Nordstrom Inc (NYSE:JWN) is plummeting today, down 19.1% at $18.76 at last glance. Though the retailer reported better-than-expected second-quarter results after the close yesterday, the company's full-year sales forecast cut is weighing on the shares. Plus, no fewer than seven analysts lowered their price targets after the event, with the lowest from J.P. Morgan Securities to $20 from $22. 

Earlier trading as low as $18.66, JWN just barely managed to keep above its Feb. 22 one-year low of $18.65. Before today's bear gap, pressure at the 320-day moving average and $27 level kept a cap on gains earlier this month. Year-to-date, the equity is down 17.4%. 

Over in the options pits, options volume is running at 14 times the intraday average, with 36,000 calls and 40,000 puts across the tape so far. The weekly 8/26 21-strike call is the most popular, followed by the 21-strike put in the same weekly series, with positions being bought to open at both. It's also worth noting that JWN has landed on the short sell restricted (SSR) list amid today's volatility. 

Shorts have been jumping on the bearish bandwagon in recent weeks, with short interest up 17.9% in the last month. Now, the 25.97 million shares sold short account for a hefty 23.1% of the stock's available float. 

Meanwhile, analysts are mostly bearish toward Nordstrom stock. Of the 12 in coverage, 10 carry a "hold" or worse rating.