Stocks dropped on Friday, weighed down by a stronger-than-expected jobs report and poorly received earnings reports from Amazon and Alphabet. The robust employment growth raised fears that the Federal Reserve would need to push rates even higher to get inflation under control.
Amid the overall slide, Bill.com (BILL) was a standout decliner, as its earnings report showed slowing growth in a key performance metric. Meanwhile, Centene (CNC) added to its recent weakness, sliding to a new 52-week low.
Earnings news had the opposite impact on Cirrus Logic (CRUS). The rally took the stock to a new 52-week high. Elsewhere, Nordstrom (NYSE:JWN) expanded its value by a quarter on reports of activist investor interest.
Nordstrom (JWN) surged on a report that activist investor Ryan Cohen has taken a large stake in the company. The news sent shares of the department store chain higher by 25%.
According to the Wall Street Journal, Cohen wants to replace at least one board member, targeting Bed Bath & Beyond CEO Mark Tritton.
Bolstered by the news, JWN surged $5.24 to close at $26.38. Friday’s advance extended a recent upswing, with shares up 67% for 2023 so far. With the gains, the stock recorded its highest close since August.
Bill.com (BILL) reported Q2 results that beat expectations on the headline numbers. However, shares plunged 27% as the results showed slowing total payment volume growth.
BILL reported earnings and revenue that exceeded expectations. However, the TPV concerns led to downgrades from BMO Capital and BTIG.
“While guidance bakes in incremental deceleration for the next few quarters, we are concerned about the trajectory into next year where consensus estimates now look high,” BMO analyst Daniel Jester said the quarterly update.
BILL finished Friday’s trading at $94.51, a slide of $34.40 on the day. The retreat reversed gains posted in January, with the stock recording its lowest close since Jan. 6.
Notable New High
The release of better-than-expected earnings news sparked buying in Cirrus Logic (CRUS). Shares rose almost 8% to reach a new 52-week high.
The semiconductor company reported Q3 non-GAAP earnings of $2.40 per share, exceeding forecasts by $0.41 per share. Revenue jumped 8% to $591M, surpassing projections by $47M.
Looking ahead, CRUS predicted Q4 revenue of $340M-$400M. Analysts were looking for a figure around $370M.
Thanks to the earnings news, CRUS surged to an intraday 52-week high of $104.97. Shares moderated a bit from there, eventually closing at $102.38, a gain of $7.49 on the day.
CRUS has climbed 41% so far in 2023.
Notable New Low
Centene (CNC) added to weakness seen during the previous several days, falling an additional 2% to reach a new 52-week low.
CNC showed strength in the early stages of Friday’s session but began losing ground during the mid-morning. With a further retreat in the afternoon, the stock finished at $71.01, a decline of $1.54 on the day. During the session, the stock reached an intraday 52-week low of $70.80.
This represented the third consecutive day of losses and the fifth lower finish in the past six sessions. CNC has fallen nearly 11% in the past month. On Thursday, managed care stocks lost ground amid news of a low Medicare Advantage payment increase for 2024.
For more of the day’s biggest winners and losers, head over to Seeking Alpha’s On The Move section.