Stocks wavered between losses and gains Wednesday as investors sifted through the latest batch of retail earnings and looked ahead to the mid-afternoon release of the minutes from the Federal Reserve's July meeting.
On the earnings front, quarterly results from Target (TGT, +2.9%) led the headlines today. The discount retailer disclosed lower-than-anticipated second-quarter revenue of $24.8 billion, while same-store sales fell by a wider-than-expected margin. TGT also lowered its full-year forecast.
On the plus side, however, earnings of $1.80 per share came in above estimates, which CEO Brian Cornell called "meaningful," particularly amid the "softening sales trends" seen early in the quarter. Additionally, the company's inventory level was 17% below where it was in Q2 2022.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"The key takeaway from the retailers is that the U.S. consumer is still healthy, maybe a little pickier and price sensitive, but still likely to continue spending well into Q3," says Edward Moya, senior market strategist at currency data provider OANDA.
Analysts eye more upside for Nvidia
Meanwhile, Nvidia (NVDA) fell 1.0% even as Raymond James analyst Srini Pajjuri reiterated a Strong Buy rating on the semiconductor stock and raised his price target to $500 from $450.
The company is on next week's earnings calendar, set to disclose its fiscal second quarter results after Wednesday's close. Pajjuri is anticipating a beat-and-raise report, which should create tailwinds for the stock. "We believe GPU demand is significantly outpacing supply on [the] AI spending boom despite mixed Cloud capital expenditure trends," the analyst says.
For what it's worth, the highest price target for the trillion-dollar tech stock is $1,000, according to S&P Global Market Intelligence, while the lowest is $211.67. This works out to an average price target of $516.59, which represents implied upside of 19% over the next 12 months or so.
Fed minutes in focus
However, it was the release of the July Fed meeting minutes that was the main event today. The minutes showed that "most survey respondents" expected the quarter-point rate hike in July "would be the last of this tightening cycle," although additional increases were possible. This is particularly notable given that participants "stressed that inflation remained unacceptably high."
Still, "the probability of avoiding a recession through 2024 grew noticeably," the minutes stated.
At the close, the Dow Jones Industrial Average was down 0.5% at 34,765, the S&P 500 was 0.8% lower at 4,404, and the Nasdaq Composite was off 1.2% at 13,474.
Related Content
-
Stocks Keep Climbing as Fed Meeting Nears: Stock Market TodayA stale inflation report and improving consumer sentiment did little to shift expectations for a rate cut next week.
-
Your End of Year Insurance Coverage Review ChecklistStop paying for insurance you don't need and close coverage gaps you didn't know about with this year-end insurance review.
-
Crypto Trends to Watch in 2026Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Crypto Trends to Watch in 2026
Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Stocks Bounce Back With Tech-Led Gains: Stock Market TodayEarnings and guidance from tech stocks and an old-school industrial lifted all three main U.S. equity indexes back into positive territory.
-
Dow Slides 427 Points to Open December: Stock Market TodayThe final month of 2025 begins on a negative note after stocks ended November with a startling rally.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
Stocks Extend Win Streak on Black Friday: Stock Market TodayThe main indexes notched wins in Friday's shortened session, with the blue-chip Dow Jones Industrial Average closing higher on the month.
-
Dow Adds 314 Points to Thanksgiving Rally: Stock Market TodayInvestors, traders and speculators enjoy the best Thanksgiving Week gains for the major stock market indexes in more than a decade.
-
Dow Gains 664 Points as Rate-Cut Hopes Rise: Stock Market TodayMarkets are pricing in higher odds for a December rate cut, fueling a major rally in stocks ahead of the Thanksgiving holiday.
