February 29, 2024

Brighton Journal

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S&P 500 futures drop as Target leads retail stocks lower

S&P 500 futures drop as Target leads retail stocks lower

Stock futures fell on Wednesday as investors weighed on a bleak quarterly update from Target that weighed on retail stocks.

And futures contracts related to the Dow Jones Industrial Average fell 32 points, or 0.1%. S&P 500 and Nasdaq 100 futures fell 0.2% and 0.3%, respectively.

The moves came after Target reported much weaker-than-expected third-quarter earnings. Results It weighed on futures and sent the stock down more than 15%.. Target also warned of a weak quarter over the holiday.

Wall Street exited a positive session, with the S&P 500 closing 0.87% higher on Tuesday and the Dow Jones adding 56.22 points, or 0.17%. The Nasdaq jumped 1.45% and is the only major average on pace for a slight gain for the week. The producer price index, which measures wholesale prices, came in below expectations, easing some investor concerns about inflation.

Chinese technology stocks were among the top performers on Tuesday, with the KraneShares CSI China Internet ETF rising 9.56% for its best daily performance since March 16. Nine out of the 11 S&P 500 sectors rose, leading the rally with telecom services and information technology. Both healthcare and materials reported slight losses.

Stocks saw a strong rally in the wake of last week’s better-than-fright CPI report. Last week, the S&P 500 posted its best weekly extension since June and all major averages are on track to end the month with gains.

However, some investors say a near-term downturn looms.

“In the short term, the market is too stretched and overdue to turn back and digest the recent rally,” said Adam Sarhan, CEO of 50Park Investments.

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