Core Insights - Target Corporation reported disappointing financial results, including a slight revenue miss and a 2.7% decline in same-store sales, along with a modest earnings beat of 7 cents off a $1.71 basis [1] Company Performance - The company experienced a 2.7% decline in same-store sales, indicating challenges in maintaining customer traffic and sales performance [1] - Target's earnings beat was modest, with a 7 cents increase over the expected $1.71 earnings per share [1] - The company has reduced the high end of its full-year earnings forecast, reflecting a more cautious outlook for the remainder of the year [1] Industry Context - Target operates in a competitive retail environment, selling a wide range of products including clothing, beauty items, groceries, electronics, and home goods [2]

Market Overview - US stocks experienced significant losses on Thursday, with the Nasdaq Composite falling over 2.1% and marking a more than 3.5% intraday reversal [1] - The S&P 500 declined by 1.5%, while the Dow Jones Industrial Average lost 380 points, or 0.8% [2] Earnings Reports - Nvidia reported strong earnings, initially boosting investor sentiment, but its stock ended the day down 3.1% after peaking at a 5% gain in early trading [3] - Walmart raised its full-year forecasts after beating profit and sales expectations in the third quarter, leading to a nearly 7% increase in its shares [7] Economic Indicators - The September jobs report revealed that the US economy added 119,000 jobs, significantly exceeding the expected gain of 51,000, although the unemployment rate rose to 4.4% from 4.3% in August [4] - Options traders are pricing in approximately 38% odds of a rate cut at the Federal Reserve's next meeting in December, reflecting a divided outlook among policymakers [5] Market Sentiment - The abrupt market downturn coincided with a sharp decline in cryptocurrency markets, with Bitcoin trading below $87,000, nearing its lowest levels since April [3] - The recent economic data provided insights into the US economy following the end of the longest government shutdown, highlighting differing views among Fed policymakers regarding labor market conditions and inflation risks [6]

We're back on Morning Trade Live. Retail names have been in focus this week with Walmart reporting earnings this morning in Target and Home Depot reporting earlier this week. It's been a bit of a mixed picture.So, here's what the big box retailer stocks are doing today after Walmart's report. And it looks like Walmart is lifting all the others. Target is up half of a percent, Costco up 1.2%, and Home Depot up 8/10 of 1% despite some of the concerns in their respective reports.So, let's get to Marley Kada no ...

Ferrari's Electric Vehicle Strategy and Financial Guidance - Ferrari's shares have decreased by approximately 14.8% following the announcement of a revised electric vehicle strategy, reducing the expected electric vehicle lineup from 40% to 20% by 2030 [1] - The company has adjusted its operating profit forecast for 2030 from 3.2 billion euros to 2.75 billion euros, with the past 12 months' adjusted operating profit reported at $2.1 billion, indicating modest growth [1] - Analysts express skepticism about whether Ferrari's stock is worth its current premium valuation, which is significantly higher than traditional automakers [1][2] Market Performance and Consumer Demand - Ferrari's stock has historically traded at a premium due to its consistent performance as a luxury brand, with a 645% increase over the past decade [1] - The company is experiencing a potential post-pandemic cool-off in luxury spending, which may affect future sales [1][3] - Despite the luxury market's challenges, Ferrari maintains a demand that exceeds supply, indicating a strong brand presence [4] Growth Projections and Shareholder Returns - Ferrari anticipates a compound annual growth rate of only 5% through 2030, which is considered low for a luxury brand [2] - The company plans to return a cumulative 7 billion euros to shareholders by 2030, representing about 10% of its current market cap, but this return is spread over several years [2] Comparison with Other Luxury Brands - Other luxury brands, such as LVMH and Hermes, are also facing challenges, suggesting a broader trend in luxury consumer spending rather than a Ferrari-specific issue [3][4] - The increase in the number of billionaires globally does not align with Ferrari's growth expectations, raising questions about its market potential [4][5] Market Dynamics and Consumer Behavior - The current interest rate environment may deter potential buyers from financing luxury purchases, impacting Ferrari's sales [6] - The used Ferrari market remains strong, indicating that consumers may be opting for pre-owned models rather than new purchases [6]

Core Insights - Walmart shares reached an all-time high, driven by a partnership with OpenAI to enhance the shopping experience through AI technology [2][6] - The stock has increased by 21% year-to-date, outperforming the broader market due to strong e-commerce sales amid economic uncertainty [3] Stock Performance - Walmart shares rose nearly 2% to over $109, leading the Dow Jones Industrial Average for the second consecutive day [3] - The stock's breakout from a symmetrical triangle pattern indicates potential for further price increases [4][6] Technical Analysis - A bullish near-term price target of $113 has been projected using the measured move technique, which adds $10 to the breakout point of $103 [7] - Key support levels to monitor include $105, $100, and $96, which may provide buying opportunities during potential retracements [8][9]

Core Insights - Target reported a decline in net sales of 0.9% for the quarter, an improvement from a 2.8% drop in the first quarter, indicating ongoing struggles amid consumer backlash and tariff pressures [3][4] - Lowe's exceeded expectations for earnings and sales, announcing a deal to acquire Foundation Building Materials, which distributes construction materials, despite DIY products making up 70% of its sales [1][2] Company Performance - Home Depot's net earnings were reported at $4.6 billion, slightly below the expected $4.71 billion, with net sales of $45.2 billion, down from the anticipated $45.3 billion [3][4] - Home Depot's president stated that the results were in line with expectations and reaffirmed a fiscal guidance of 2.8% sales growth for the year [4] Market Trends - CFO Richard McPhail indicated that higher tariff rates on some imported goods could affect prices, but adjustments would not be broad-based, with customers shifting from larger home improvement projects to smaller ones due to uncertainty and higher borrowing costs [5][6] - Foot traffic at Home Depot stores fell by 4.3% in July, while online sales increased by approximately 12% compared to the second quarter of 2024 [9] Upcoming Earnings Reports - Major retailers, including Lowe's and Walmart, are scheduled to report earnings, which may provide insights into how they are managing the impact of higher tariff rates [7][8]

Group 1: Upcoming Earnings Reports - Nvidia, Costco, Dell, and Salesforce are expected to release quarterly reports that could significantly impact their sectors and the broader market [1] - AutoZone and Okta are set to report on Tuesday, with AutoZone's stock being a solid performer and Okta anticipated to have a strong quarter [2] - Dick's Sporting Goods and Macy's will report on Wednesday, with Macy's being labeled as a "chronically underperforming department store chain" [3] Group 2: Company-Specific Insights - Nvidia's stock is currently in a precarious position, but there are expectations for discussions around its growing software arm during earnings [4] - Salesforce's future revenue growth is uncertain, with mixed opinions on its agentic AI platform's impact, and there are rumors of renewed acquisition talks for Informatica [4] - Costco typically reports consistent earnings, but its stock tends to decline post-earnings announcements, suggesting investors should wait before buying [5] Group 3: Market Context and Economic Indicators - The Labor Department will release a key inflation metric, the personal consumption expenditures report, which is crucial for understanding inflation trends amid rising tariffs [6] - Marvell Technology and Dell are both considered integral to the data center sector, with Dell expected to report strong results despite speculation about Marvell's performance [6]

Market Overview - Pre-market futures are flat following a sixth-straight up-day on the S&P 500, with market sentiment buoyed by positive trade deal expectations [1] - The Dow is up +0.03%, while the S&P 500 is down -0.17%, and the tech-heavy Nasdaq has grown nearly +20% recently but is down -0.28% in early trading [2] Economic Indicators - U.S. Leading Economic Indicators (LEI) dropped -1.0% to 99.4 points in April, marking the first time below 100 since September of last year [3] - This decline represents the fifth consecutive drop in LEI, which had previously shown a hopeful turn around the 2024 election [3] Home Depot Earnings - Home Depot reported mixed Q1 results with earnings of $3.56 per share, missing the Zacks consensus by 3 cents, while revenues were $39.86 billion, up +9.4% year over year [5] - Shares of Home Depot are up +2% in pre-market trading, recovering most of year-to-date losses [5] Viking Holdings Earnings - Viking Holdings reported Q1 results with negative earnings of -$0.24 per share, which was 2 cents better than expected, and revenues of $897.06 million, exceeding estimates by +4.49% [6] - Despite outperforming expectations, shares are down -5% in early trading [6] Upcoming Earnings Reports - Palo Alto Networks is expected to report negative -8% earnings growth with revenues projected to increase by +14.67% [7] - Toll Brothers is anticipated to report fiscal Q2 numbers with expected declines of -15.3% on earnings and -11.9% on revenues, although it may achieve its third earnings beat in the last four quarters [8]

Core Viewpoint - Walmart is set to increase prices on food, electronics, and toys due to rising costs from tariffs, despite a temporary reduction in tariffs on Chinese goods [2][3]. Group 1: Company Insights - Walmart, as the largest importer of container goods in the US, sources approximately 60% of its imports from China, which significantly impacts its pricing strategy [3]. - CEO Doug McMillon emphasized that Walmart cannot absorb the increased costs from higher import taxes, indicating a direct correlation between tariffs and retail pricing [2]. - The company remains focused on long-term growth, suggesting that it has historically emerged stronger from economic uncertainties [5]. Group 2: Economic Context - US consumers are already experiencing higher prices, with consumer sentiment declining for four consecutive months, raising concerns about potential decreased demand and its effects on the broader economy [4]. - Although consumer prices rose only 2.3% annually in April, experts warn that the full impact of tariffs has yet to be felt, which could lead to steeper inflation as importers pass on costs to consumers [6]. - The US Federal Reserve has indicated a likely scenario of lower growth and higher inflation, raising concerns about potential stagflation [7]. Group 3: Market Implications - The fluctuating tariff policies are expected to create volatility in consumer prices and spending patterns, affecting overall market dynamics [8].