Target, a major U.S. retailer, halved its profits in the latest quarter and warned of low sales in its year-end shopping season, triggering market concerns that inflation could affect retailers’ key trading seasons. U.S. stock indexes opened lower Wednesday ( 16. Shares of the department store tumbled nearly 15% in early trading.
before the deadline,Dow Jones Industrial Averageup nearly 0.04%,Nasdaq Composite Indexfell more than 100 points or nearly 1.1%,S&P 500 indexfell nearly 0.5%,Semiconductor PhiladelphiaThe index fell by almost 2.9%.
US stock futures trimmed gains ahead of US opening up as investors became concerned that the US economy may be more vulnerable than previously thought, while a missile attack on the Polish border gave investors reason investors to suspend a potential stock market rally of days.
Poland was hit by a missile that killed two people. Reuters reported Wednesday, citing NATO sources familiar with the matter, that US President Joe Biden told G7 and NATO partners that the explosion in Poland was caused by Ukrainian and non-Ukrainian anti-aircraft missiles In Russia, Biden once said that “the missile is unlikely to be fired from Russia,” which eased public concerns about the immediate spread of the conflict as soon as it is the news came out.
On the same day NATO Secretary General Jens Stoltenberg stated that the explosion in Poland may have been caused by a Ukrainian missile, but there was no indication that it was deliberate and that Russia was ultimately responsible for its continuation.
Stoltenberg said the incident in Poland coincided with a massive Russian missile attack on Ukraine and that while the entire incident was still being investigated, there was no indication that it was the result of a deliberate attack or that it was “targeted to NATO’s offensive military operations”. ”, but it is clear that it is not Ukraine’s fault and that Russia bears the ultimate responsibility for its continued illegal attacks against Ukraine.
The dollar andJPYBoth were lower, with the dollar down 0.2% against a basket of currencies. The greenback is now nearly 6% down from its late-September peak, and posted its largest decline last week. against 10 main rivals since the early days of the 2020 pandemic.
In particular, Kansas City Federal Reserve Bank President Esther George once again reminded the public of economic risks as she warned of the “painful consequences” of the Fed’s rate-hiking cycle, which may find it possible to curb the US economy without triggering a recession. Inflation is getting tougher.
On the US data front, the US consumer price index (CPI) and producer price index (PPI) both slowed more-than-expected in October, causing investors to start digesting the Federal Reserve (Fed) to slow pace of December interest rate hikes Expected, but now retail sales in October rose faster than expected, indicating US consumer demand is still very strong, inflation higher might come back.
The monthly growth rate of US retail sales in October was reported at 1.3%, higher than the 1% expected and the previous value of 0%. After deducting autos and gasoline, retail sales in October recorded 0.9%, a new high since May this year, higher than market expectations of 0.2%, and the previous value was 0, 6%.
In other news, the annual growth rate of the UK consumer price index (CPI) hit a 41-year high in October, showing that the inflation has not stopped. The Bank of England (BOE) could bear more anti-inflationary pressure and continue to hike interest rates sharply.
Data shows that the UK CPI rose 11.1% in October compared to the same period last year, topping the Bank of England forecast by 10.9% and outpacing the Bank of England forecast by 10.7%. economists’ average forecast, hitting a new high since October 1981, and continued to accelerate from the previous month, without slowing down. When energy and food prices are deducted, the UK core CPI increased at an annualized rate of 6.5% in October, in line with September.
Starting at 22:00 on Wednesday (16th) Taipei time:
Focus on actions:
Destination department store (TGT-USA) fell 14.65% in early trading to $152.75 a share
Target’s earnings report was mixed last quarter, with earnings of $1.54 a share, well below analyst expectations of $2.13, but revenue of $26.52 billion was higher to expectations of $26.38 billion. Looking ahead, Target expects sales to decline during the holiday season later this year and will reduce operating margin by 50% for the current quarter, while also launching a cost-cutting plan aimed at saving up to $3 billion per year.
by Lowe (USA LOW) rose 3.87% to $216.88 a share in early trading
Home improvement retailer Lowe’s performed well in the recent quarter, with revenue rising 3% to $23.48 billion and earnings per share of $3.27, both better than analyst expectations. $23.13 billion and $3.10. the upper end of its full-year revenue forecast at about $97 billion to $98 billion from an original forecast of $99 billion. Comparable sales are expected to decline between 1% and 1%.
Prey(GRAB-US) rose 2.4 percent to $3.21 a share in early trading
Grab Holdings raised its full-year revenue forecast on Wednesday as demand for its ride-hailing and food delivery services remained strong in Southeast Asia. The company said it expects full-year revenue of $1.32 billion to $1.35 billion, up from a previous forecast of $1.25 billion to $1.3 billion, and has raised its forecast for annual gross merchandise growth (GMV) to between 22% and 25%; previously forecast GMV growth of 21% to 25% this year.
Today’s key economic data:
- US core retail sales rose 1.3% in October, versus 0.4% expected and 0.1% previously
- US Retail Sales Up 1.3% in October, 1% Expected, 0% Previously
- US retail sales excluding autos and gasoline rose 0.9% in October, expected at 0.2% and previously was 0.6%.
Wall Street Analysis:
Kiran Ganesh, chief executive officer of UBS Global Wealth Management (UBS Global Wealth Management), said the recent decline in US inflation and China’s reopening discussions have been the focus of market attention, but the main reason of the stock market rally is still due to positive news from US data. Inspired by the news, however, it may not be that easy to get inflation back to its target level.
Colin Asher, senior economist at Mizuho Bank, predicts more market volatility in the future. While inflation may have peaked, that doesn’t mean the numbers are falling fast, so it wouldn’t be too surprising to see some weakness in stocks.
