Dollar Tree Stock Tumbles After Earnings Miss

Major U.S. equities indexes continued their sluggish start to September, ending mixed and little changed on Wednesday.

Data released Wednesday morning showed that job openings in July dropped to their lowest level since early 2021, the latest indication of a cooling labor market.

The S&P 500 traded higher early in the session but lost steam in the afternoon, closing with a daily loss of 0.2%. The tech-heavy Nasdaq ended Wednesday down 0.3%, while the Dow recovered from an afternoon slump to end with a gain of less than 0.1%.

Dollar Tree (DLTR) shares plummeted 22.2%, falling more than any other S&P 500 stock. The discount retailer reported lower-than-expected sales and profits for the second quarter and reduced its full-year guidance. The company said macroeconomic pressure had a growing impact on its middle-income and higher-income customers.

Health insurers’ shares came under pressure after executives from Centene (CNC) raised concerns about a potential decline in the number of people who receive Medicaid benefits. Speaking at the Wells Fargo 2024 Healthcare Conference, Centene CEO Sarah London said the company’s Medicaid business faces continued headwinds related to shifts in the redeterminations process, which determines eligibility for recipients. Centene shares dropped 8.7%, while shares of competitor Molina Healthcare (MOH) were down 7.0%.

Shares of Hormel Foods (HRL) lost 6.4% after the maker of Spam, Planters peanuts, and other packaged food brands slashed its full-year sales forecast. Although Hormel’s net income for its fiscal third quarter topped expectations, the company said lower commodity prices and production disruptions at a plant in Virginia dragged on its performance.

Tesla (TSLA) shares drove 4.2% higher on Wednesday, marking the top performance in the S&P 500, following reports that the electric vehicle (EV) maker intends to launch a six-seat version of its Model Y car. Sources told Reuters that Tesla plans to start production of the new model in China late next year and has told suppliers to anticipate a double-digit increase in Model Y output from its Shanghai factory.

Shares of Mondelez International (MDLZ), parent company to food brands like Oreo cookies and Philadelphia cream cheese, added 4.2% following positive comments from Evercore ISI. Analysts at the investment banking firm applauded sales gains in the U.S. and Europe, noting the snack company is well positioned to accelerate sales growth in the second half of 2024.

Seagate Technology (STX) stock advanced 4.1%. A report by Zacks Equities Research earlier this week highlighted positive short-term price momentum for shares of the data storage technology provider, boosted by upward revisions to earnings estimates.

Shares of insulin pump manufacturer Insulet (PODD) gained 2.8%. The stock has posted significant gains since last week, when the Food and Drug Administration (FDA) approved Insulet’s Omnipod 5 device for patients with type 2 diabetes.