4 Stocks Defying The Market Downturn

After an impressive year of steady growth in blue-chip indices, volatility has returned to Wall Street. Market participants are concerned about the growing omicron variant of COVID-19, as well as mounting inflationary pressure that could compel the Fed to walk back on its dovish monetary policies.

For context, the three major indexes — the S&P 500, the Dow and the NASDAQ composite — are down 10.47%, 7.47%, and 15.82%, respectively, month-to-date. 

When the markets begin to sell off, most stocks are involved in the downturn, yet there are always a group of stocks that defy the market and head higher.

What Happened: An affiliate to activist hedge fund Starboard Value LP is offering to buy Kohl’s Corp. for $9 billion. The unsolicited offer made waves in the consumer cyclical sector, attaching other department store stocks to the news. On the news of the potential buyout, here are four stocks that are defying the market downturn Monday. 

• Kohl’s Corp. KSS: Wisconsin’s third-largest business is up a booming 31.79% to $61.73. 
• Macy’s Inc M: the New York-based department store chain is up 15.04% to $26.39. 
• Dillard’s Inc DDS the Little Rock, Arkansas-based company is trading 11.3% higher at $257.40. 
• Urban Outfitters URBN the Philadelphia, PA based chain is up 7.87% to $28.50.

Why It's Important: American consumers, bolstered by the 2021 growth in the markets, have continued to spend despite rising prices and supply chain disruptions due to the omicron variant.

Some analysts fear sustained dips in the stock market could lead to a broader pullback in spending that could further dampen recovery, leading to tepid growth in 2022.