Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. Stocks Open Lower After Target's Big Earnings Miss

Published 17/08/2022, 15:32
Updated 17/08/2022, 15:32
© Reuters.

© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks opened lower after retailing giant Target reported weak quarterly sales.

At 10:06 ET (14:06 GMT), the Dow Jones Industrial Average was down 161 points, or 0.5%, while the S&P 500 was down 0.6% and the NASDAQ Composite fell 0.9%.

Target Corporation (NYSE:TGT) said earnings plunged 90% because cash-strapped shoppers, grappling with inflation, held back on buying nonessential goods and forced it to slash prices.

The report was in contrast to optimistic reports on Tuesday from Walmart Inc (NYSE:WMT) and Home Depot Inc (NYSE:HD).

Retail sales were unchanged in July from the prior year, slightly below predictions for a 0.1% gain, and spending trends appeared solid. That could bolster confidence that conditions aren’t rapidly deteriorating. Lower gasoline prices helped keep the reading flat from June.

Target did confirm its full year outlook, saying its inventory mark-downs had cleared the way for it to get back on track in time for the holiday shopping season.

Later today, the Federal Reserve will release the minutes of its July meeting, when it raised interest rates by 0.75 percentage point for the second month in a row. Investors will be analyzing the comments to see what the Fed's future moves might be. The next scheduled policy meeting is in September.

In meme stock news, Bed Bath & Beyond Inc (NASDAQ:BBBY) stock was up another 27% on Wednesday morning.

Oil inched higher. Crude Oil WTI Futures was up 0.6% to $87.09 a barrel, while Brent Oil Futures crude rose 0.2%, to $92.53 a barrel. Gold Futures fell 0.4% to $1,781 an ounce.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.