NEW YORK, NY / ACCESSWIRE / June 14, 2018 / Hiked interest rates as well as a negative report from a housing market research firm had home stocks falling in Wednesday trading, including KB Home, D.R. Horton, and Toll Brothers. Shares of Macy's were in the red despite two exciting announcements. The company has appointed a new CTO and has taken a minority equity stake in retail software platform provider B8ta Inc.
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Macy's, Inc. shares dropped 4% on Wednesday with around 12 million shares traded. The retailer announced this week that it has taken a minority equity stake in B8ta Inc., a retail software platform provider. B8ta CEO Vibhu Norby said, "With B8ta's software platform and business model, product makers can go from solely selling online to launching their products with Macy's in a few clicks. Macy's was the best partner for B8ta to scale our pioneering retail-as-a-service model to a breadth of categories like apparel, beauty, home, and more." Macy's president Hal Lawton remarked, "Macy's is in the experience business. We're always looking for new formats that allow our customers to discover and connect with our products and services in-store in a way that drives engagement with our brand." Macy's also announced yesterday that it has appointed Naveen Krishna as its chief technology officer, effective June 16, 2018. Lawton commented, "I'm thrilled to have Naveen Krishna join the Macy’s team as we enhance our focus on technology. We are investing in technology to improve digital and mobile experiences, site stability, store technology and fulfillment and logistics improvements. Naveen's track record in omni-channel retail makes him the perfect fit to lead the Macy's Technology organization at this critical time."
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KB Home shares closed down 7.31% on almost 3.2 million shares traded on Wednesday. Shares of the U.S. homebuilding company dropped long with other players in the industry after the Federal Reserve hiked short-term rates up and revealed a likelihood that a higher terminal rate for this upward cycle in interest rates was possible. For homebuilding companies this isn't good news as it means higher financing costs for people borrowing on mortgages. A potential decrease in the demand for homes as well as a disappointing report from a housing market research firm had traders reacting to the news in a sell off of home building related stocks. According to a person familiar with the report that Zelman & Associates sent out, housing orders were seasonally weaker than normal.
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