Nordstrom stock plunges 16% despite solid quarterly results

Nordstrom (JWN.US) stock plunged over 16.0% during today's session despite the fact that the department store chain posted upbeat quarterly results. Company earned  49 cents per share while analysts expected earnings of 27 cents per share. Revenue of $3.66 billion also topped forecasts of $3.36 billion, however still remain 6% below pre-pandemic levels due to supply chain issues and stiff competition. On-line sales increased 30% compared to year earlier, representing 40% of company’s total business. Nordstrom also lifted its full-year guidance. Company now expects that annual revenue will rise over 35%, up from a prior outlook calling for 25% increase and above analysts’ expectations of 30% increase.

Nordstrom (JWN.US) stock bounced off the upper limit of the descending channel yesterday and launched today's session with a14% bearish price following the release of company’s quarterly earnings. Currently price is heading towards support at $28.85 which coincides with lower limit of the channel and 50% Fibonacci retracement of the last upward wave which started in October 2020. Source: xStataion5