Stock Market Today Mid-Morning Updates
On Tuesday, the Dow Jones Industrial Average is down by 130 points after Target’s (NYSE: TGT) profit warning. Ahead of Friday’s read on May consumer prices, inflation continues to be the main talking point at Capitol Hill where Treasury Secretary Janet Yellen testifies before a Senate panel on Tuesday and a House panel on Wednesday. She will have tough questions to answer on how the Biden administration has handled the economy after she was initially wrong about inflation being transitory.
Shares of United Natural Foods (NYSE: UNFI) stock is up by over 3% on today’s opening bell after it reported better-than-expected quarterly revenue and profit. On top of that, it also raised its full-year forecast. GitLab (NASDAQ: GTLB) is up by over 15% today after the software company also reported better-than-expected quarterly results. Elsewhere, Novavax (NASDAQ: NVAX) is in focus as an FDA panel will convene today to consider the drugmaker’s approval application for its Covid-19 vaccine. However, the Nasdaq has halted NVAX stock from trading today according to a press release from the company.
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are up by 0.54% today while Microsoft is also up by 0.14%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading lower on Tuesday. Among the Dow financial leaders, Visa (NYSE: V) is down by 0.05% while JPMorgan Chase (NYSE: JPM) is also down by 0.34%
Shares of EV leader Tesla (NASDAQ: TSLA) are down by 1.06% on Tuesday. Rival EV companies like Rivian (NASDAQ: RIVN) are also down by 3.90%. Lucid Group (NASDAQ: LCID) is down by 0.42% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading mixed today as well.
Dow Jones Today: U.S. Treasury Yields Tops 3%; Senators Unveil Bipartisan Bill To Regulate Crypto
Following the stock market opening on Tuesday, the S&P 500, Dow, and Nasdaq are all trading lower at 0.33%, 0.40%, and 0.34% respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is down by 0.34% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also down by 0.33%.
The benchmark 10-year U.S. Treasury yield briefly topped 3% today, hitting its highest level in nearly a month. Yields have surged this year as investors reacted to persistently high inflation ratings and also a more hawkish policy by the Federal Reserve. Today, Senator Kirsten Gillibrand and Cynthia Lummis unveiled a bipartisan bill to create a regulatory framework around crypto. Dubbed the Lummis-Gillibrand bill, it will help classify the vast majority of digital assets as commodities.
Target Stock Tanks After Firm Provides Downbeat Short-Term Profit Guidance
Meanwhile, Target is on the decline in the stock market now. On the whole, this follows the latest operational update from the leading U.S. retailer. Getting straight into it, Target, as of earlier today, warns that its overall profits will be experiencing tailwinds in the short term. According to the company, this will likely be a direct result of its ongoing inventory management strategy. In detail, Target is aiming to mark down less desirable items, cancel orders, and take other bold measures to clear its excess inventory. As such, Target is also cutting its profit margin guidance for the current quarter, according to the press release.
Providing some general commentary on the company’s latest move is CEO Brian Cornell. He states, “We thought it was prudent for us to be decisive, act quickly, get out in front of this, address and optimize our inventory in the second quarter — take those actions necessary to remove the excess inventory and set ourselves up to continue to be guest relevant with our assortment.” According to Cornell, this pre-emptive course of action from Target’s end will serve to better mitigate the impacts of its growing inventory. This, in turn, will help to clear up space on store shelves for merchandise that customers are keen to buy. He names groceries, household essentials, beauty items, and seasonal categories such as back-to-school supplies as key areas of focus.
All in all, Target continues to adapt to the current inflationary environment accordingly. While this may be causing turbulence for now, long-term investors could be keen on TGT stock. This could be the case as Target alongside the broader retail industry aims to navigate these uncertain times.
Kohl’s In Negotiations With Franchise Group To Go Private At $8 Billion Price Tag
Shares of the Kohl’s Corporation (NYSE: KSS) are making waves in the stock market today. For the most part, the current movement in the company’s shares stems from the latest update on its sale. Namely, as of yesterday, Kohl’s is entering exclusive sales talks with Franchise Group. This information is courtesy of a press release from Kohl’s. To begin with, Franchise Group is a retail store operator and holding company. It acquires and manages franchise companies like American Freight, The Vitamin Shoppe, and Buddy’s Home Furnishing, among others. According to the release, Franchise is looking to acquire Kohl’s for $60 per share. In this case, Kohl’s would be valued at about $8 billion.
As a result of all this, KSS stock is currently gaining by over 9% at today’s opening bell. Getting into the specifics, Franchise is currently working with Oak Street Real Estate Capital to finance the deal. It is mainly doing so via real estate, according to CNBC sources. Overall, the current news would be another key development in the story of Kohl’s acquisition. The likes of which started in December 2021 when Engine Capital, a hedge fund, urged the company to consider a possible sale. Safe to say, there would be no shortage of attention on KSS stock at the opening bell today.
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