Live Stock Market News Updates: Stocks Rebound After Slip On Profit Target Warning

Live Stock Market News Updates: Stocks Rebound After Slip On Profit Target Warning

US stocks turned higher on Tuesday after erasing earlier losses triggered by an earnings warning from Target that renewed concerns about the economic outlook.

The S&P 500 rose 0.4%, and the Dow Jones Industrial Average added 55 points. The technology-focused Nasdaq rose 0.6%. Meanwhile, the benchmark 10-year US Treasury bond index fell below 3%.

Target (TGT) was in focus during morning trade after the retailer said Tuesday it aims to reduce excess inventory by offering discounts, canceling orders and reassessing its expenses — an announcement that comes just weeks after the company shocked investors with massive profits that led To down the stock by 25%.

Target’s stock fell 2% after the company reported its revised guidance. The decline also weighed on retail peers amid renewed concerns about the impact of inflation and supply chain imbalances on corporate margins. Walmart (WMT) and Costco (COST) shares are down about 2% in early trading.

“The fear in the market is that earnings estimates, backed by weaker net profit margins, could become the next layer of focus,” Quincy Crosby, chief equity strategist at LBL, said in a recent note.

Tuesday morning’s moves extend into a series of back and forth sessions as investors assess the economic outlook and prepare for central bank policy makers to raise interest rates in a bid to cool inflation.

All three major indicators closed in the green on Monday, although they are far from session highs after hesitating from the morning rally. The S&P 500 closed up 0.3% after retreating from a jump of more than 1%, the Dow erased a 300-point gain to finish just above the break-even point, and the Nasdaq rose 0.4%.

“Right now, the market is seeing the Fed trying to go down a painful bumpy road, but it’s trying to find an easy way out,” Crosby said. “And the market finds itself between wanting to believe in rallies and not believing that the Fed can negotiate a smooth landing.”

Inflation is high on investors’ minds this week, with the May Consumer Price Index (CPI) released by the Bureau of Labor Statistics due on Friday. Wall Street will be looking for signs that prices have peaked as they hope for a pause in monetary tightening in the fall months.

Away from Friday’s CPI reading, investors face a lighter economic calendar and gains this week.

10:38 a.m. ET: Standard & Poor’s, Dow and Nasdaq turn from morning losses

Here are the major moves in the markets as of 10:38 a.m. ET:

  • Standard & Poor’s 500 (^ Salafist Group for Preaching and Combat): +10.00 (+0.24%) to 4131.43

  • dow (^ DJI): +27.67 (+0.08%) to 32943.45

  • Nasdaq (^ ninth): +51.19 (+0.42%) to 12,112.56

  • raw (CL = F.): +1.23 dollars (+1.04%) to 119.73 dollars per barrel

  • He went (GC = F.): + $7.30 (+0.40%) to $1,851.00 per ounce

  • Treasury for 10 years (^ degeneration): -5.3 basis points to produce 2.9850%

9:30 a.m. ET: Stocks plunge as choppy view of target weighs on markets

Here is where the major indicators opened at the start of the Tuesday session:

  • Standard & Poor’s 500 (^ Salafist Group for Preaching and Combat): -34.69 (-0.84%) to 4086.74

  • dow (^ DJI): -230.58 (-0.70%) to 32685.20

  • Nasdaq (^ ninth): -140.86 (-1.17%) to 11,920.51

  • raw (CL = F.): Settlement date in Singapore Dollars to N/A Dollars per barrel

  • He went (GC = F.): + $1.20 (+0.07%) to $1,844.90 per ounce

  • Treasury for 10 years (^ degeneration): -3.5 basis points to produce 3.0030%

7:30 a.m. ET: Stock futures drop with earnings warning

Here are the main moves in futures trading ahead of Tuesday’s open:

  • S&P 500 futures contracts (ES = F.): -36.75 (-0.89%) to 4083.75

  • Dow futures contractsYM = F.): -259.00 (-0.79%) to 32653.00

  • Nasdaq futures contractsNQ = F.): -142.50 (-1.13%) to 12462.50

  • raw (CL = F.):- $0.61 (-0.51%) to $117.89

  • He went (GC = F.): + $ 9.70 ( + 0.53% ) to $ 1853.40 per ounce

  • Treasury for 10 years (^ degeneration): +8.1 basis points to produce 3.0380%

A professional trader works inside a booth on the floor of the New York Stock Exchange (NYSE) in New York City, US, June 3, 2022. REUTERS/Brendan McDermid

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed

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2022-06-07 14:48:24

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