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.
Earnings Reports Ahead of Today’s Open
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.
What to Expect After the Bell
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.
What to Expect from the Stock Market This Week
Fed Chair Jerome Powell will give a speech between FOMC meetings at the Jackson Hole symposium this Friday. Most analysts currently expect Powell to give a neutral outlook on whether or not the Fed will lower rates below their current 4.25-4.50% range where we’ve been all of 2025 so far. Likely he will point to upcoming PCE, BLS, CPI and PPI numbers scheduled to be released between now and the next Fed meeting in mid-September.
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Target Corporation (TGT): Free Stock Analysis Report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Lowe's Companies, Inc. (LOW): Free Stock Analysis Report The Estee Lauder Companies Inc. (EL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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