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Target Up Big on Q2 Beat; Payroll Adjustment, Fed Minutes Expected
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Wednesday, August 21st, 2024
Pre-market futures are up slightly this morning. This follows a break in the sustained gains on the S&P 500 and Nasdaq yesterday — these streaks had been for eight-straight trading days higher. It would appear market appetites are coming back around today, with the Dow currently up +70 points at this hour, the S&P +11 and the Nasdaq +42 points.
Retail Earnings Morning: TGT, M, TJX
Target (TGT - Free Report) shares are jumping higher ahead of the bell on its Q2 report this morning. Earnings of $2.57 outpaced the $2.16 per share in the Zacks consensus by +19% (and well above the $1.80 per share reported in the year-ago quarter). This makes the third bottom-line earnings beat in the past four quarters. Revenues of $25.45 billion eked out a beat of +0.89%, and ahead of the $24.77 billion in sales a year ago.
Full-year earnings guidance of $9.00-9.70 per share pulls the top end higher than the previous Zacks consensus of $9.22. However, the company warned that sales comps for the fiscal year will come in on the low side of the current estimate range.
Yet the return to top-line growth — the first since 2022 — is a welcome development for Target stock buyers this morning. Pre-market shares are +16% at this hour, adding to the stock’s paltry +1% gains year to date. This big-box discount retailer marks a shift in consumer preference from higher-priced stores, as Americans work to defeat inflation on their own. For more on TGT’s earnings, click here.
Macy’s (M - Free Report) shares are down -7% in early trading on cut full-year sales forecasts. This, even as the company reported a big +65.6% positive earnings surprise: 53 cents per share versus 32 cents. This company has not missed on earnings in more than five years. Revenues, however, missed expectations this morning by nearly -3% to $4.94 in the quarter. This morning’s share price descent adds to the -11% drop year to date. For more on M’s earnings, click here.
The TJX Companies (TJX - Free Report) , which has a bigger current market cap than Target and Macy’s combined, also beat on both top and bottom lines this morning. Earnings of 96 cents per share surpassed expectations by four cents, with revenues of $13.47 billion outpacing the $13.33 billion in the Zacks consensus. Full-year earnings guidance was more or less in-line with prior estimates. Shares are up +4.7% at this hour, adding to the discount retailer’s +21% year to date.
Benchmark Employment Revisions at 10am ET Today
After the open for regular trading today, the Bureau of Labor Statistics (BLS) will release preliminary benchmark employment revisions from April of 2023 to March 2024. Analysts are currently speculating a drop of -500K jobs filled overall — a not-insignificant revision that would demonstrate the domestic labor market had been weaker than previously reported. At -500K, it would average a loss of -42K jobs per month. Still, it would be another straw on the camel’s back for the Fed to cut interest rates next month.
FOMC Minutes Released 2pm ET Today
Minutes to the most recent Federal Open Market Committee (FOMC) meeting on July 30-31 will come out at 2:00 pm ET today. Obviously, the Fed kept its 5.25-5.50% Fed funds rate it last adjusted in July of last year. In its press release, the Fed said the economy was still solid, unemployment higher but still low, and inflation was down but still slightly elevated. There were no dissenters in monetary policy; today’s minutes will articulate these decisions on a finer scale.
Image: Bigstock
Target Up Big on Q2 Beat; Payroll Adjustment, Fed Minutes Expected
Wednesday, August 21st, 2024
Pre-market futures are up slightly this morning. This follows a break in the sustained gains on the S&P 500 and Nasdaq yesterday — these streaks had been for eight-straight trading days higher. It would appear market appetites are coming back around today, with the Dow currently up +70 points at this hour, the S&P +11 and the Nasdaq +42 points.
Retail Earnings Morning: TGT, M, TJX
Target (TGT - Free Report) shares are jumping higher ahead of the bell on its Q2 report this morning. Earnings of $2.57 outpaced the $2.16 per share in the Zacks consensus by +19% (and well above the $1.80 per share reported in the year-ago quarter). This makes the third bottom-line earnings beat in the past four quarters. Revenues of $25.45 billion eked out a beat of +0.89%, and ahead of the $24.77 billion in sales a year ago.
Full-year earnings guidance of $9.00-9.70 per share pulls the top end higher than the previous Zacks consensus of $9.22. However, the company warned that sales comps for the fiscal year will come in on the low side of the current estimate range.
Yet the return to top-line growth — the first since 2022 — is a welcome development for Target stock buyers this morning. Pre-market shares are +16% at this hour, adding to the stock’s paltry +1% gains year to date. This big-box discount retailer marks a shift in consumer preference from higher-priced stores, as Americans work to defeat inflation on their own. For more on TGT’s earnings, click here.
Macy’s (M - Free Report) shares are down -7% in early trading on cut full-year sales forecasts. This, even as the company reported a big +65.6% positive earnings surprise: 53 cents per share versus 32 cents. This company has not missed on earnings in more than five years. Revenues, however, missed expectations this morning by nearly -3% to $4.94 in the quarter. This morning’s share price descent adds to the -11% drop year to date. For more on M’s earnings, click here.
The TJX Companies (TJX - Free Report) , which has a bigger current market cap than Target and Macy’s combined, also beat on both top and bottom lines this morning. Earnings of 96 cents per share surpassed expectations by four cents, with revenues of $13.47 billion outpacing the $13.33 billion in the Zacks consensus. Full-year earnings guidance was more or less in-line with prior estimates. Shares are up +4.7% at this hour, adding to the discount retailer’s +21% year to date.
Benchmark Employment Revisions at 10am ET Today
After the open for regular trading today, the Bureau of Labor Statistics (BLS) will release preliminary benchmark employment revisions from April of 2023 to March 2024. Analysts are currently speculating a drop of -500K jobs filled overall — a not-insignificant revision that would demonstrate the domestic labor market had been weaker than previously reported. At -500K, it would average a loss of -42K jobs per month. Still, it would be another straw on the camel’s back for the Fed to cut interest rates next month.
FOMC Minutes Released 2pm ET Today
Minutes to the most recent Federal Open Market Committee (FOMC) meeting on July 30-31 will come out at 2:00 pm ET today. Obviously, the Fed kept its 5.25-5.50% Fed funds rate it last adjusted in July of last year. In its press release, the Fed said the economy was still solid, unemployment higher but still low, and inflation was down but still slightly elevated. There were no dissenters in monetary policy; today’s minutes will articulate these decisions on a finer scale.
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