The stock market is looking for direction as trading begins in New York. The S&P 500 index, consisting of shares of large US companies, was down 0.1 percent compared to yesterday’s closing reading.
The Dow Jones, which follows the thirty largest companies, was up 0.1 percent, and the Nasdaq, which consists of shares of technology companies, was down 0.2 percent.
Yesterday, the S&P 500 and Nasdaq ended in the positive, despite the opening of the decline, but the Dow Jones remained glowing in the red.
Today, the eyes of investors are on the world’s largest company by market value Nvidia’s in the interim report.
The review will be published after the Wall Street markets close.
The earnings report can even determine the direction of the US stock market in the short term, Bank of America analyst Gonzalo Asis has evaluated . Nvidia has a large weight in, for example, the S&P 500 index, in which many Finns also invest through funds.
The semiconductor giant was down 1.2 percent at $145.21 on Wednesday.
Target’s interim report disappointed investors
Discount store giant Target published its third quarter interim report today. The stock fell 18.6 percent to $126.01.
The company’s turnover rose to 25.67 billion dollars from 25.40 billion dollars at the same time last year. The number fell short of analysts’ forecast of $25.89 billion.
Net income fell to $854 million from $971 million, when analysts were expecting net income of $1.05 billion. Earnings per share fell to $1.85 from $2.10. Analysts were expecting $2.28.
Target lowered its guidance for this year. The company expects to post adjusted earnings per share of $8.30 to $8.90, down from expectations of $9.00 to $9.70.
Discretionary consumption is weak
Managing director Brian Cornellin according to the market environment was volatile and the company faced “unique challenges and price pressure that affected the result”.
For example, according to the management, there was less demand for discretionary consumption products. In this type of product, the margins are better than, for example, in food.
Target’s competitor Walmart published an interim report yesterday, whose numbers beat analysts’ forecasts, which was rewarded with a 3.0 percent price increase.
Other competitors like TJX Companies and BJ’s Wholesale Club publish their interim reports later, which provide additional information on consumer purchasing behavior.
Source: www.arvopaperi.fi
