Stock Market News: Footlocker, Nike, Peloton, Nvidia shares active

Foot Locker store

Shares of Foot Locker tumbled Wednesday over 30% after the company cuts its annual forecast citing consumers who are pulling back on spending as inflation remains high. 

MARKETS

Foot Locker shares sink as inflation curbs spending, cuts annual forecast

Shares of Foot Locker plunged after the retailer lowered its yearly forecast and suspended its quarterly dividend to conserve cash citing "price-sensitive" consumers.

The retail chain reported $5 million in net losses over the second quarter, or 5 cents a share, after sales slipped 9.9% to $1.891 billion from $2.065 billion. Same-store sales sank over 9% and the retailer is also suspending its quarterly dividend.

Foot Locker dropped its full-year guidance and now expects adjusted earnings per share (EPS) between $1.30 to $1.50, down from the previous guidance of $2.00 to $2.25. The retail store also said it expects sales to range from down 8.0% to 9.0%, more than previous guidance. 

Meanwhile, shares have lost nearly 40% of their value this year as of Tuesday's close. 

LIFESTYLE

Starbucks drops third official pumpkin spice drink for fall season

Starbucks announced its launch of two new fall beverages at its stores, as well as exclusive pumpkin spice menu items at its Starbucks Reserve locations.

It's officially fall at Starbucks with more new pumpkin spice products hitting the stores.

Peloton Bike (Getty Images)

Peloton Interactive shares fell by double-digits after the company forecast first-quarter revenue between $580 million and $600 million, below Refinitiv estimates of $655.9 million. Meanwhile, Peloton's revenue during the fourth quarter dropped to $642.1 million from $678.7 million in 2022.

TECHNOLOGY

Peloton rebrands itself with more app membership tiers, including a free version

Peloton Interactive announced changes on Wednesday that allow everyone to access many of the company's fitness classes and workouts, no matter where they are.

Marketing expenditures for the holiday season and costs associated with the recall of 2.2 million exercise bikes were cited as headwinds as were subscribers, which fell by 29,000.

"The slowdown exceeded our expectations through May and through the first three weeks of June as consumer spending shifted toward travel and experiences" said CEO Barry McCarthy in a letter to shareholders.

Additionally, revenue from connected fitness products backpedaled to $220.4 million from $295.6 million, while subscription revenue rose to $421.7 million from $383.1 million a year earlier.

Reuters contributed to this post.

POLITICS

First GOP debate likely to dissect ‘Bidenomics’ as candidates ask: Are you better off?

Republican candidates are likely to attack President Biden's economic record and the ongoing inflation crisis during the first presidential primary debate.

Fox News will host the first GOP debate Wednesday night in Milwaukee and the state of the U.S. economy is expected to take center stage.

MARKETS

Nvidia: 5 things to watch

The stakes are high for chipmaker Nvidia when it reports quarterly results after the bell Wednesday. A lofty stock price, market cap and AI dominance leave little room for disappointment.

Nvidia, considered the Wall Street darling of AI, will report results Wednesday in what is a highly anticipated quarter with shares up over 200% this year.