Target Jumps 11.3% After Beating Expectations

But Macy's was on the losing side with 12.9% drop
By Newser Editors and Wire Services
Posted Aug 21, 2024 3:40 PM CDT
Stocks Rise After Retailers Beat Expectations
The New York Stock Exchange is shown on Wednesday, Aug. 21, 2024.   (AP Photo/Peter Morgan)

US stocks closed higher Wednesday after more big companies delivered profit reports that topped analysts' expectations.

  • The S&P 500 rose 23.73 points, or 0.4%, to 5,620.85.
  • The Dow Jones Industrial Average rose 55.52 points, or 0.1%, to 40,890.49.
  • The Nasdaq composite rose 102.05 points, or 0.6%, to 17,918.99.

Target jumped 11.3% after the retailer said an important underlying measure of sales strength for the spring came in at the high end of its expectations, as traffic increased at both its stores and online, the AP reports. Its profit topped analysts' estimates, and it raised its forecast for the full year. TJX, the company behind TJ Maxx and Marshalls, rose 6.1% after it likewise reported stronger profit for the latest quarter than expected. The retailer also raised its profit forecast for the full year and said it saw increased customer transactions at all of its divisions.

They helped offset an 12.9% drop for Macy's. The company reported better profit than analysts expected, but its revenue fell short of forecasts. It also lowered its expected range for sales this year, due in part to "a more discriminating consumer."

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A preliminary revision released by the US government Wednesday morning suggested the economy created 818,000 fewer jobs in the year through March than earlier reported. That's a big number and adds to evidence showing a cooling job market, but it was smaller than some had feared. "We have long warned that the jobs numbers were unreliable and subject to dramatic revision," says Nancy Tengler, chief executive of Laffer Tengler Investments. "No investment decisions should be made on these numbers." She's instead focusing on the longer term. She says rising US worker productivity is an encouraging signal for the economy.

(More stock market stories.)

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