U.S. stocks waver as Target’s sales outlook weighs on sentiment

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U.S. stocks waver as Target’s sales outlook weighs on sentiment
Credit: © Reuters.

By Liz Moyer

Investing.com -- U.S. stocks fell on Wednesday after a weak outlook from Target fueled fears that inflation was going to hurt retailers this holiday season.

At 10:15 ET (15:15 GMT) the Dow Jones Industrial Average was down 13 points, or 0.04%, while the S&P 500 was down 0.6% and the NASDAQ Composite was down 1.5%.

Target Corporation (NYSE: TGT ) shares fell more than 14% on its earnings report , in which it blamed inflation and shifting consumer spending for a drop in demand. Its early promotions for the holiday shopping season cut into profit.

U.S. retail sales rose 1.3% in October, which was more than the 1% expected after a muted September.

Investors have been clinging to any signs that inflation is cooling so the Federal Reserve can start to ease back on the size of its interest rate hikes . The market is expecting that while interest rates will rise again next month, the Fed will raise its benchmark rate by just a half of a percentage point, rather than the 0.75 percentage point it has moved rates higher in each of its last four meetings.

Shares of home improvement retailer Lowe’s Companies Inc (NYSE: LOW ) rose after it raised its profit forecast for the year, a contrast to Target. 

Oil fell. Crude Oil WTI Futures was down 2.2% to $84.97 a barrel, while Brent Oil Futures crude fell 1.6%, to $92.33. Gold Futures was flat at around $1778.

 

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