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1-800-FLOWERS (FLWS) Stock Trades Up, Here Is Why

FLWS Cover Image

What Happened?

Shares of e-commerce florist and gift retailer 1-800-FLOWERS (NASDAQ: FLWS) jumped 3.2% in the morning session after the broader market rallied as Federal Reserve Chair Jerome Powell signaled potential interest rate cuts in the coming months. The broader market rallied in response to comments from Fed Chair Jerome Powell at a high-profile symposium. Powell indicated the central bank might lower a key interest rate in the coming months, though he gave no specific timeline and suggested a cautious approach. Lower interest rates can stimulate the economy and boost consumer spending, which benefits retail companies like 1-800-FLOWERS. The S&P 500 index rose 1.4% following the remarks.

After the initial pop the shares cooled down to $5.40, up 0.2% from previous close.

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What Is The Market Telling Us

1-800-FLOWERS’s shares are extremely volatile and have had 36 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock dropped 5.2% on the news that markets continued to decline, as investors grew cautious ahead of a key speech by Federal Reserve Chair Jerome Powell. The move came as U.S. equity markets recorded a fifth consecutive day of losses for major indexes like the S&P 500, with technology stocks experiencing the largest declines. Investors have grown wary that the sharp rally in the tech sector since April may have advanced too far. The market-wide caution is largely driven by the upcoming Jackson Hole symposium, a meeting of central bankers, where traders are anxiously awaiting Fed Chair Powell's speech on Friday for guidance on the future path of interest rates.

1-800-FLOWERS is down 30.9% since the beginning of the year, and at $5.40 per share, it is trading 43% below its 52-week high of $9.48 from August 2024. Investors who bought $1,000 worth of 1-800-FLOWERS’s shares 5 years ago would now be looking at an investment worth $174.20.

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