November's big gains in the stock market have many people on Wall Street looking for a run to new record highs in the near future. With the possibility of a Santa Claus rally before 2023 comes to a close, investors are gravitating toward stocks that they see as having the most potential to benefit from a broader move upward.

However, when it comes to individual stocks, a disappointing performance on the business front can take a company out of contention to join a rally in the overall stock market. That proved to be the case for Designer Brands (NYSE: DBI) and Daktronics (NASDAQ: DAKT) on Tuesday, as their most recent financial results inspired shareholders to lose confidence. Here's what these two companies said to make their investors take pause.

Shares of Designer Brands plunged 31% in premarket trading early Tuesday. The footwear and accessories retailer gave investors bad news about the fiscal third quarter that ended Oct. 28, and it foresees further trouble ahead even into the holiday shopping season.

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Source Fool.com