Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

US stocks fall as investors weigh solid retail sales data against Target's warning of weaker holiday spending

US stocks fall as investors weigh solid retail sales data against Target's warning of weaker holiday spending

The strong retail sales growth in October reinforces expectations that the Fed will hike interest rates again in December by at least 50 basis points.

US stocks fell on Wednesday as investors weighed Target's disappointing third-quarter earnings results against solid retail sales data.

Retail sales jumped 1.3% in October to $694.5 billion, well ahead of estimates for a 1% gain, led by higher gas prices and auto sales. Sales were up 0.9% when excluding gas and auto sales. The data showed the ongoing resilience of the consumer despite elevated inflation and higher interest rates.

While retail sales jumped in October, one retailer was unable to fully capitalize off those gains. Target reported disappointing third-quarter earnings, which showed a drop in profits and a murky outlook for the upcoming holiday shopping season. The company also said it would launch a $3 billion cost-cutting plan.

"Although Target reported disappointing third quarter results, the October retail sales report underscores that a more discerning US consumer continues to spend. While credit cards are being used more frequently, consumers are taking advantage of earlier than usual holiday sales," LPL's chief global strategist Quincy Krosby told Insider.

The strong retail sales growth in October reinforces expectations that the Federal Reserve will hike interest rates once again in December by at least 50 basis points.

Here's where US indexes stood at the 4:00 p.m. ET close on Wednesday:

*  S&P 500: 3,959.10, down 0.82%

*  Dow Jones Industrial Average: 33,556.60, down 0.11% (36.32 points)

*  Nasdaq Composite: 11,183.66, down 1.54%

Here's what else happened today:


*  The rate of inflation in the UK accelerated in October to hit a new four-decade high of 11.1% amid steep price hikes in food and energy.

*  The US and China look like they're moving towards a military conflict over Taiwan that would crush economic growth, influential investor Ray Dalio warned.

*  Authorities in the US and Bahamas are in talks to possibly bring Sam Bankman-Fried to the US for questioning, according to Bloomberg.

*  Target stock fell 15% after the retailer revealed a disappointing third-quarter earnings report to investors.

*  The average 30-year fixed mortgage rate fell below 7% in its biggest weekly drop since July as inflation pressures show signs of easing.

*  Citadel's Ken Griffin warned that the US economy would enter an "immediate great depression" if China invades Taiwan and cuts off access to its semiconductor industry.

In commodities, bonds and crypto:


*  West Texas Intermediate crude oil fell 1.62% to $85.51 per barrel. Brent crude, oil's international benchmark, dropped 1.12% to $92.81.

*  Gold rose 0.11% to $1,778.80 per ounce.

*  The yield on the 10-year Treasury fell 10 basis points to 3.68%.

*  Bitcoin dropped 1.96% to $16569, while ether fell 3.80% to $1,209.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
×