Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Nordstrom, Fossil Group, and Chesapeake Energy Moved the S&P 500 Last Week

The S&P 500  (SNPINDEX: ^GSPC  ) had a particularly volatile week, with several days in which the index made substantial moves. In the end, the ups and downs largely cancelled each other out, with the S&P 500 falling by less than a single point for the week. But inside the S&P 500, you could see the tug of war between winning and losing stocks, as Nordstrom  (NYSE: JWN  ) posted substantial gains even as Fossil Group  (NASDAQ: FOSL  ) and Chesapeake Energy  (NYSE: CHK  ) suffered fairly large losses.

Source: Chesapeake Energy.

Nordstrom soared almost 15% as the retailer posted strong results in its first quarterly report of 2014. Same-store sales rose by 3.9% from the year-ago quarter, pulling overall revenue up by 6.5% and helping earnings climb above what investors had expected to see. In addition, even though the winter months have been weak for most retailers, Nordstrom was able to reiterate its full-year guidance in 2014. Nordstrom has pulled off an amazing balancing act between its namesake premium retail operations and its Nordstrom Rack discount stores, and as long as its emphasis on customer service continues to draw customers, Nordstrom should be able to excel in the long run.

Fossil Group dropped 8% after the watch and accessories company troubled investors with its most-recent quarterly report. Even though Fossil enjoyed 14% sales growth for the quarter, including even better growth in its watch segment, Fossil's earnings produced much less impressive gains. Moreover, guidance for Fossil's current quarter was less than shareholders had expected to see, with signs of slowing revenue growth raising fears that the stock won't be able to sustain even its fairly reasonable current valuation. With increasing competition in the accessories space, Fossil needs to have success in maintaining strong relationships with key licensing partners and finding new avenues for growth in areas like emerging markets.

Chesapeake Energy fell 7% after the oil and gas production company said that it would continue to restructure itself in order to improve its financial health. Chesapeake will spin off some of its assets into separately traded entities, assigning debt to those entities to help reduce the liabilities on its own corporate balance sheet. Meanwhile, further sales of non-core assets should help Chesapeake refocus on its most lucrative production opportunities. The sales will reduce Chesapeake's production volume marginally, but it could easily help the company succeed in the long run. 

3 stock picks to ride America's energy bonanza
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, The Motley Fool is offering a look at three energy companies using a small IRS "loophole" to help line investor pockets. Learn this strategy, and the energy companies taking advantage, in our special report "The IRS Is Daring You to Make This Energy Investment." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2961991, ~/Articles/ArticleHandler.aspx, 8/30/2015 12:06:50 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Dan Caplinger

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:55 PM
^GSPC $1988.87 Up +1.21 +0.06%
S&P 500 INDEX CAPS Rating: No stars
CHK $7.39 Up +0.37 +5.27%
Chesapeake Energy CAPS Rating: ****
FOSL $61.60 Up +0.46 +0.75%
Fossil CAPS Rating: ***
JWN $73.36 Up +0.04 +0.05%
Nordstrom CAPS Rating: ****