Much like the past few days of trading, we’re seeing some selling off in the Nasdaq, S&P 500 and small-cap Russell 2000 this morning, while the blue-chip Dow is narrowly holding onto hopes for a green open: the Dow is +10 points at this hour, +0.02%. The S&P 500 is -5 points, -0.09%, and the Nasdaq is -46 points, -0.20%. The Russell 2000 is -0.12% at this hour.
Aside from reporting Q2 earnings, big-box retailer Target TGT announced that it will replace its long-term CEO Brian Cornell with 20-year Target veteran Michael Fiddelke as of February of next year. Target reported mixed results this morning, missing by 4 cents on its bottom line with earnings of $2.05 per share on revenues of $25.21 billion in the quarter, +1.2% better than analysts were expecting.
In Target’s case, it may take some time before investors warm to this front-office shakeup: pre-market trading has sent down TGT shares more than -10% so far in early trading. This piles on to the -22% performance in the shares, year to date.
The TJX Companies TJX, the parent of TJ Maxx, Marshall’s and HomeGoods stores, outpaced expectations on both top and bottom lines. Earnings of $1.10 per share amounted to a +8.9% beat, while revenues of $14.4 billion surpassed the Zacks consensus by +2.33%. Shares are up +4% on the news so far this morning, adding onto the +11.4% gains year to date.
Home improvement retailer Lowe’s LOW outpaced earnings estimates by a solid dime in its Q2 report ahead of today’s open to $4.33 per share. Revenues came in-line — officially a miss by a mere -0.01% to $23.96 billion in the quarter. Same-store sales turned around in the quarter, and shares are up +2.8% in pre-market trading.
Cosmetics giant Estee Lauder EL posted a one-penny beat to +$0.09 per share in the company’s fiscal Q4 report this morning, while revenues of $3.41 billion posted a modest beat of +0.27% over estimates. The company’s outlook has not impressed investors this morning, however, as shares are down -5% on the news, giving back a quarter of its gains year to date.
The World Economic Symposium at Jackson Hole, Wyoming begins today and goes through Friday. Today, we’ll expect a speech from Fed Governor Chris Waller, one of the two dissenting voices at the July Federal Open Market Committee (FOMC) meeting, at this symposium. Atlanta Fed President Raphael Bostic — one of the nine votes to keep rates steady — will also deliver speeches both today and tomorrow, but not at Jackson Hole.
