Stocks fell Tuesday with the retail sector in the spotlight after a profit margin warning from Target.- Target is planning to reduce excess inventory as customers buy fewer discretionary items.
Stocks pulled back Tuesday, with Target's fresh profit warning weighing on other retail shares and putting consumer demand considerations in the spotlight ahead of the government's latest
All three of Wall Street's major benchmarks fell after gaining in Monday's session. Target shares dropped after the general merchandise retailer for cut its second-quarter profit margin outlook for the second time since mid-May. It said it's cutting prices to move an inventory pileup and is seeing customers pull back on discretionary spending to focus on purchasing food and household essentials. Shares of other retailers were lower, including Walmart, Costco, and TJX.
Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Tuesday:
- S&P 500: 4,093.20, down 0.68%
- Dow Jones Industrial Average: 32,724.08, down 0.58% (191.70 points)
- Nasdaq Composite: 11,954.73, down 0.83%
Target, like all companies, is keeping watch on shifting customer demands in a hot inflationary environment. Investors will get the May consumer inflation report on Friday, with an Econoday consensus estimate of 8.2%.
Around the
Goldman Sachs economists have projected oil prices will surge to $140 a barrel this summer on a drop in Russian production and a gradual recovery in Chinese demand.
Oil prices edged down. West Texas Intermediate crude was off by $0.02 at $118.48 per barrel. Brent crude, the international benchmark, slipped 0.1% to $119.37.
Gold rose 0.2% to $1,847 per ounce. The 10-year Treasury yield fell four basis points to 3.01%.
Bitcoin fell 6.2% to $29,491.27.