Market Overview - US stock futures are rising significantly following the September consumer price index (CPI) report, with the S&P 500 set to open at an all-time high as prices increased by 3% year-over-year, slightly below the expected 3.1% [1][5][10] - The market is now pricing in a 99% chance of a Federal Reserve rate cut in October and a 96% chance for December, indicating strong investor sentiment [10][12] Federal Reserve Insights - The CPI report is seen as a bullish catalyst for the market, with expectations that the Federal Reserve will cut rates due to the cooler-than-expected inflation data [8][12] - Core inflation, which excludes food and energy, also showed a decrease from 3.1% to 3%, indicating progress, although it remains above the Fed's 2% target [12][14] - The lack of additional economic data due to the government shutdown creates uncertainty for future Fed decisions, particularly regarding the job market [15][18] Corporate Earnings - Intel reported better-than-expected third-quarter earnings, with revenues of $13.7 billion and adjusted earnings per share of $0.23, leading to a nearly 6% increase in pre-market shares [24][26] - The company is experiencing improved sales in its PC and AI data center businesses, although it still faces challenges in its foundry operations [24][26][28] Trade Relations - President Trump has halted trade talks with Canada, citing an anti-tariff advertisement that featured former President Ronald Reagan, which adds to the uncertainty in trade relations [2][19] - The ongoing trade discussions and their implications for tariffs remain a significant concern for the market, as they could impact business operations and investor sentiment [20][21] Company-Specific Developments - Target announced it will eliminate 8% of its corporate roles due to underperformance and market share losses, which analysts view as a necessary move [30][31] - Deckers, the maker of Hoka and Uggs, reported disappointing sales guidance, forecasting full-year sales of approximately $5.35 billion, reflecting cautious consumer behavior [31][32] - Procter & Gamble exceeded sales estimates in its latest quarter, particularly in beauty and grooming categories, although its baby and family care segment showed flat volume [32][33]

Core Insights - Target Corporation (TGT) is eliminating approximately 1,800 corporate positions, which is about 8% of its global workforce, to address competitive pressures and revive growth [1][9] - The layoffs are strategically timed before the holiday shopping season to enhance efficiency and execution speed [2][9] - Target's recent performance indicates operational challenges, with a decline in comparable sales of 1.9% in Q2 and 3.8% in Q1, while competitors like Walmart and Amazon continue to gain market share [3][4] Financial Performance - Target's shares have decreased by 37.6% over the past year, contrasting with the 7.8% growth of the industry, while Walmart and Amazon shares increased by 29.5% and 17.3%, respectively [6][9] - The forward 12-month price-to-earnings ratio for Target is 11.91, significantly lower than the industry average of 30.26, indicating a potential undervaluation [7] - The Zacks Consensus Estimate projects a year-over-year decline in sales of 1.4% and earnings per share by 16.3% for the current financial year [10] Future Projections - The Zacks Consensus Estimate for Target's sales in the current quarter is $25.42 billion, with a projected decline of 0.98% year-over-year [11] - For the next quarter, sales are estimated at $30.68 billion, reflecting a decline of 0.75% year-over-year [11] - The earnings per share for the current year is estimated at 7.42, indicating a year-over-year decline of 16.25% [12]

Group 1: Trade Relations - President Trump has ended all U.S. trade negotiations with Canada due to an advertisement aired by Ontario's provincial government featuring former President Reagan's voice, which criticized tariffs [1][2] - The Ronald Reagan Presidential Foundation stated that the ad misrepresents Reagan's 1987 remarks, which were edited without permission [2] Group 2: Economic Indicators - The Bureau of Labor Statistics is set to release September's consumer price index (CPI) report after a nine-day delay caused by the government shutdown, which is the second longest in history [3][5] - Economists expect the CPI to rise by 0.4% from August and 3.1% year-over-year, with core CPI projected to increase by 0.3% month-over-month and 3.1% year-over-year [5] Group 3: Corporate Developments - Target is cutting 1,800 corporate jobs, which is about 8% of its workforce, as part of efforts to return to growth after years of sluggish sales [4][6] - Ford Motor Company exceeded Wall Street expectations for the third quarter, but has slashed its full-year outlook due to a fire at an aluminum supplier, which is expected to cost between $1.5 billion and $2 billion [7][8] - Rivian, an electric vehicle maker, is laying off about 4.5% of its workforce, translating to over 600 job cuts [8] Group 4: Sports Industry - Miami Heat guard Terry Rozier and Portland Trail Blazers head coach Chauncey Billups were arrested in connection with gambling investigations, leading to their immediate leave from the NBA [10] - An indictment against former NBA player Damon Jones suggests he leaked information to bettors about players while affiliated with the Los Angeles Lakers [11]

Company Developments - Target (TGT) is eliminating 1,800 positions, approximately 8% of its corporate workforce, in response to a 36% decline in shares over the past year, aiming to enhance agility [3] - Rivian (RIVN) plans to lay off 600 employees and has settled a $250 million lawsuit [8] - Mondelez (MDLZ) intends to reduce marketing costs through the use of generative AI [8] - Intel (INTC) shows signs of turnaround progress in its latest earnings report [7] Industry Insights - Crude oil prices have stabilized above $60 per barrel after a significant increase, driven by new U.S. sanctions on Russian energy giants Rosneft and Lukoil, which have been largely unaffected since the onset of the Ukraine war [4] - The Trump administration's sanctions may complicate transactions for buyers of Russian crude, particularly for Indian and Chinese refiners, who may face additional risks and potential discounts [6] - Gas prices in the U.S. have fallen below $3 per gallon on average following OPEC+ production increases [5] Market Overview - In Asia, Japan increased by 1.4%, Hong Kong by 0.7%, and China by 0.7%, while India decreased by 0.4% [8] - In Europe, midday trading showed London down by 0.1%, Paris down by 0.5%, and Frankfurt down by 0.1% [8] - Futures indicate a slight increase with Dow up by 0.1%, S&P by 0.3%, and Nasdaq by 0.5% [8]

This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Dive Brief: As part of a larger shift to Target’s global headquarters structure, the retailer will lay off about 1,000 corporate staff and close 800 open roles, per details the company shared with Retail Dive. This represents about 8% of its global headquarters workforce, and specifics about those impacted will be shared with employees on Tuesday. No store or supp ...

Group 1: Alaska Airlines - Alaska Airlines experienced an IT outage that grounded all flights, leading to the cancellation of over 220 flights [3][5] - Operations were restored after the ground stop was lifted at 11:30 PM Pacific time [3] - The airline postponed its third-quarter 2025 financial results conference call due to the outage [6] Group 2: Target Corporation - Target Corporation announced a significant downsizing, cutting 1,800 corporate job positions, which includes 1,000 layoffs and the removal of approximately 800 open positions, representing about 8% of its global workforce [7][8] - U.S. corporate staff have been instructed to work remotely during the notification process for affected employees [7] - Target's shares rose by 0.7% in premarket trading following the announcement [8] Group 3: Economic Data - The Consumer Price Index (CPI) report is anticipated, with expectations of persistent retail inflation in September, projected to rise 0.4% month-over-month and 3.1% year-over-year [10][11] - Core CPI, excluding food and energy, is also expected to rise 0.3% month-over-month and 3.1% year-over-year [12] - The CPI report was rescheduled to October 24 due to a government shutdown, and it will be the last significant economic reading before the Federal Reserve's monetary policy meeting [13][14]

Group 1: Alaska Airlines - Alaska Airlines experienced an IT outage that led to a temporary ground stop, affecting all flights and resulting in over 220 cancellations [3][5] - Operations were restored after the ground stop was lifted at 11:30 PM Pacific time [3] - The airline postponed its third-quarter 2025 financial results conference call due to the outage [6] Group 2: Target Corporation - Target Corporation announced a significant downsizing, cutting 1,800 corporate positions, which includes 1,000 layoffs and the elimination of approximately 800 open positions, representing about 8% of its global workforce [7][8] - The restructuring aims to make Target's operations more agile, with U.S. corporate staff required to work remotely during the notification process [7] - Target's shares rose by 0.7% in premarket trading following the announcement [8] Group 3: Economic Data - The Consumer Price Index (CPI) report is anticipated, with expectations of persistent retail inflation in September, projected to rise 0.4% month-over-month and 3.1% year-over-year [10][11] - Core CPI, excluding food and energy, is also expected to rise 0.3% month-over-month and 3.1% year-over-year, consistent with August's figures [12] - The CPI report was rescheduled to October 24 due to a government shutdown, serving as a crucial economic indicator before the Federal Reserve's upcoming monetary policy meeting [13][14]

Group 1 - Target Corporation plans to cut around 1,800 corporate roles to return to growth, marking the first major layoffs in a decade [1][2] - Incoming CEO Michael Fiddelke stated that the complexity created over time has hindered the company's progress, leading to the decision to eliminate roles [2][3] - The layoffs will affect approximately 8% of Target's 22,000 corporate staff, with 80% of the cuts occurring in the U.S. [3] Group 2 - The job cuts come during a period of sluggish growth, with Target experiencing 11 consecutive quarters of declining or weak comparable sales growth [5] - Target is facing challenges from rising competition, particularly from Walmart and Amazon, and anticipates a decline in fiscal year 2025 sales [5] - Over the past year, Target's shares have dropped 37.24%, and over the past five years, they have fallen over 41%, contrasting with Walmart's nearly 123% increase [6]

Core Insights - Target is cutting 1,800 corporate jobs, marking its first major layoffs in a decade [1] Company Summary - The layoffs represent a significant and painful restructuring for Target [1]

Roughly two months after naming a new CEO, Target said it plans to cut an estimated 1,800 corporate jobs in an effort to offset the retailer's stagnant sales numbers, according to multiple reports citing a memo sent to employees. Target's board of directors appointed Michael Fiddelke as the retail giant's next CEO on Aug. 20, succeeding veteran CEO Brian Cornell. Fiddelke, who will take over for Cornell in 2026, announced the layoffs in a memo to Target employees at the retailer's headquarters in Minneapo ...