US stocks trade mixed as investors digest Target earnings and retail sales data
- US stocks were mixed on Wednesday as investors digested retail sales data and Target's earnings.
- Retail sales jumped 1.3% in October, ahead of estimates for a 1% gain, as consumers remain on solid footing.
- Third-quarter earnings from Target disappointed investors as the retailer warned of a murky holiday shopping season.
US stocks were mixed on Wednesday as investors turned their attention to retail sales data and the outlook from Target following its third-quarter earnings.
Retail sales jumped 1.3% in October to $694.5 billion, well ahead of estimates for a 1% gain, led by higher gas prices and auto sales. Sales were up 0.9% when excluding gas and auto sales. The data showed the ongoing resilience of the consumer despite elevated inflation and higher interest rates.
While retail sales jumped in October, one retailer was unable to fully capitalize off those gains. Target reported disappointing third-quarter earnings, which showed a drop in profits and a murky outlook for the upcoming holiday shopping season. The company also said it would launch a $3 billion cost-cutting plan.
"Although Target reported disappointing third quarter results, the October retail sales report underscores that a more discerning US consumer continues to spend. While credit cards are being used more frequently, consumers are taking advantage of earlier than usual holiday sales," LPL's chief global strategist Quincy Krosby told Insider.
Here's where US indexes stood shortly after the 9:30 a.m. ET open on Wednesday:
- S&P 500: 3,981.91, down 0.25%
- Dow Jones Industrial Average: 33,612.66, up 0.06% (19.74 points)
- Nasdaq Composite: 11,285.00, down 0.65%
Here's what else is happening this morning:
- The rate of inflation in the UK accelerated in October to hit a new four-decade high of 11.1% amid steep price hikes in food and energy.
- The US and China look like they're moving towards a military conflict over Taiwan that would crush economic growth, influential investor Ray Dalio warned.
- Authorities in the US and Bahamas are in talks to possibly bring Sam Bankman-Fried to the US for questioning, according to Bloomberg.
- Target stock fell 15% after the retailer revealed a disappointing third-quarter earnings report to investors.
In commodities, bonds and crypto:
- West Texas Intermediate crude oil fell 2.34% to $84.89 per barrel. Brent crude, oil's international benchmark, dropped 1.77% to $92.20.
- Gold rose 0.21% to $1,780.50 per ounce.
- The yield on the 10-year Treasury fell 6 basis points to 3.72%.
- Bitcoin dropped 2.33% to $16,507, while ether fell 3.89% to $1,208.
- The 10-year Treasury yield will drop to 3.5% by the end of next year as the massive bond rally will continue, UBS says
- Instagram's crisis highlights the bigger issues the entire ad industry is facing
- Exit polls predict BJP advantage in MP, Rajasthan, Congress win in Chhattisgarh, Telangana and tight contest in Mizoram
- Delhi airport: Flights diverted due to bad smog, bad weather
- Meta expanding child safety measures as scrutiny mounts
- IPL has given me confidence to remain calm under pressure: Rinku Singh
- GST collection surges to 8-month high in November
- Environmental Impact Assessments