US stocks: Target hit the retail industry hard

US stocks: Target hit the retail industry hard

 

US stocks opened lower on Tuesday after worries about the retail sector weighed on the market.



At 9:47 a.m. ET, the Dow Jones was down 198 points, or 0.6%, while the S&P 500 was down 0.6% and the NASDAQ Composite was down 0.6%.



Shares of Target Corporation (NYSE: TGT) fell 6% after the retailer warned of weaker margins and said it must cut inventory by canceling orders and slashing prices. 


They had to clear excess inventory to make room for high-demand items, such as food and cosmetics.


This warning caused a shock in the retail sector. Shares of Walmart Inc (NYSE: WMT) fell 2.5% and e-commerce giant Amazon.com Inc (NASDAQ: AMZN) fell 2.5%. 



Retail earnings reports have spiked in recent weeks, and investors look for signs of a possible recession on the back of changes in consumer spending habits. consumers.



Shares of department store operator Kohl's Corp (NYSE: KSS) rose 7% after revealing talks to acquire retail holdings company Franchise Group (NASDAQ:FRG), which owns the brands. retailers such as Vitamin Shoppe.


Shares of J.M. Company. Smucker (NYSE:SJM) rose 3.8% after better-than-expected quarterly results. But the maker of jellies, jams and other food products said inflation and supply chain issues continued to affect results.




Oil prices increase. WTI crude oil futures rose 0.3 percent to $118.92 a barrel and Brent crude futures rose 0.4 percent to $120 a barrel. Gold futures rose 0.3% to $1,848 an ounce.

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