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
Be a smarter, better informed investor.
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
-
Small Businesses Are Racing to Use AIThe Kiplinger Letter Spurred on by competitive pressures, small businesses are racing to adopt AI. A recent snapshot shows the technology’s day-to-day uses.
-
The Me-First Rule of Retirement SpendingFollow the 'Me-First" rule and you won't have to worry about running out of money when the stock market goes south.
-
Stocks Slide to Start September: Stock Market TodaySeasonal trends suggest tough times for the stock market as we round into the end of the third quarter.
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
AI Start-ups Are Rolling in CashThe Kiplinger Letter Investors are plowing record sums of money into artificial intelligence start-ups. Even as sales grow swiftly, losses are piling up for AI firms.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have TodayUNH stock was a massive market beater for ages — until it wasn't.
-
S&P 500 Tops 6,500 Even as Nvidia Slips: Stock Market TodayThe world's most valuable company closed lower after earnings, but the S&P 500 managed to notch a new record high.
-
Stocks Edge Higher With Nvidia, Fed in Focus: Stock Market TodayThe AI bellwether reports earnings after today's close, while Wall Street is keeping a cautious eye on President Trump's attacks against the Fed.
-
President Trump Makes Markets Move Again: Stock Market TodayThe White House is moving ahead with plans to reshape the Federal Reserve and to buy shares in more sectors and stocks.
-
Stocks Struggle to Start Nvidia Week: Stock Market TodayAnother important week for the stock market starts on a risk-off note.
