Hot Stocks: RIVN plunges; Macau casino stocks rally; JWN, ARLO jump on earnings

Wall Street finished Wednesday’s trading in the green on the prospect that Russia’s invasion of Ukraine would slow the Federal Reserve’s plan to increase interest rates. The S&P 500 rose 1.9% on the day, bouncing back from losses posted during the previous session.

The gains included a rally within the casino sector. Encouraged by signs that China might ease its COVID restrictions, operators with exposure to Macau saw notable strength, including Las Vegas Sands (NYSE:LVS), Wynn Resorts (NASDAQ:WYNN), Melo Resorts & Entertainment (NASDAQ:MLCO) and MGM Resorts (NYSE:MGM).

Nordstrom (NYSE:JWN) also drew significant buying interest, as a stellar quarterly report spurred a nearly 40% advance. Earnings news also gave a boost to Arlo Technologies (NYSE:ARLO), which reached a new 52-week high.

On the other side of the spectrum, Rivian Automotive (NASDAQ:RIVN) was one of the day’s standout decliners, hurt by news of a price increase. Meanwhile, Groupon (NASDAQ:GRPN) extended its post-earnings losses to record a new 52-week low.

Sector In Focus

Shares of casino operators with heavy investments in China’s gambling resort of Macau got a substantial boost, amid reports that the country might ease its COVID restrictions.

According to the Wall Street Journal, Chinese authorities might back off on their zero-tolerance policy related to COVID. Any changes would likely take place in the spring.

Bolstered by the news, Las Vegas Sands (LVS) posted one of the biggest gains in the group, rising about 10%. Wynn Resorts (WYNN) and Melo Resorts & Entertainment (MLCO) both rallied around 9%. MGM Resorts (MGM) recorded an advance of about 4%.

Standout Gainer

A standout earnings performance prompted a rush of buying in shares of Nordstrom (JWN). Boosted by better-than-expected Q4 results, the stock jumped nearly 38% on the day.

The retailer reported a quarterly profit that topped expectations by 23%. Revenue also surpassed consensus, jumping more than 20% to reach $4.49B.

Looking ahead, the company predicted EPS for 2022 of $3.15-$3.50. JWN also projected revenue growth of 5%-7% for the year, including retail sales and credit card revenues.

In response to the results and forecast, JWN advanced $7.39 to finish at $26.93. The rally took the stock above a recent trading range and to its highest level since late November, when the stock suffered a major setback in the wake of a previous earnings report.

Standout Loser

The impact of a major price increase sent shares of Rivian Automotive (RIVN) reeling. The stock plummeted more than 13% on the session to record its lowest close since coming public late last year.

The electric vehicle maker has raised its prices by about 20%, responding to inflationary pressures and the impact of higher component costs. The new prices apply to customers who have already booked vehicles, potentially leading to a backlash among current customers and a decline in demand overall.

RIVN retreated $8.35 to end at $53.56. The stock is now within striking distance of its all-time low of $50, reached in late January. Wednesday’s finish represented a new closing low for the stock.

Shares of the EV maker came public in November of 2021 in an IPO priced at $78 per share and eventually rallied to a 52-week high of $179.47. The stock is now 70% off that peak and 31% below its IPO price.

Notable New High

Arlo Technologies (ARLO) jumped almost 29% following the release of Street-beating earnings results. With the advance, the stock reached a fresh 52-week peak — its highest level since late 2018.

The maker of wireless surveillance cameras reported a Q4 profit, surprising analysts, who had predicted that the company would record a loss. Revenue also exceeded projections, rising 24% from last year to reach a level near $143M.

ARLO finished the day at $11.19, a gain of $2.51 on the session. The stock also reached an intraday 52-week high of $11.50.

Shares had established their previous high in early January but suffered a sustained selling spree through the month. The recent jump took the stock above that early January mark, adding to gains seen in late 2021.

ARLO has advanced nearly 78% over the past six months.

Notable New Low

Groupon (GRPN) has steadily lost ground throughout the week amid the release of a poorly received quarterly report that came out on Monday. The stock added another 4% decline on Wednesday, taking GRPN to a new 52-week low.

On Monday evening, the online coupon service released quarterly results that missed analysts’ consensus for both earnings and revenue. Active customers slipped compared to the previous quarter, while the firm’s top-line figure dropped 35% from last year to reach $223M.

GRPN fell headed into the earnings release, dropping more than 5% on Monday. The stock added another nearly 8% drop on Tuesday in the wake of the quarterly report.

Wednesday’s trading saw the stock retreat another 81 cents to close at $19.24. During the day, shares reached an intraday 52-week low of $18.60.

The recent slide took the stock below a recent trading range and added to the weakness seen during the first half of 2021. GRPN has dropped nearly 69% over the past year.

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