The mood fluctuates between optimism and pessimism, so that there is still no clear trend on the stock exchanges. An exception is the trading platform Roobinhood Markets, which is likely to have bad news in store.
The tug-of-war between optimists and pessimists on Wall Street continues. After a weaker start, the leading indices even gradually increased their gains, although investors remain nervous. The Dow Jones gained 0.8 percent to 33,180.14 points. The tech-heavy Nasdaq advanced 0.9 percent to 12,175.23 points and the broad-based S
Target's second profit warning within a few weeks initially weighed on investor sentiment. Because high inflation is dampening consumer sentiment, the retailer cut its margin targets. Since the industry environment has deteriorated again in recent weeks, Target is intensifying its efforts to empty the warehouse with discount campaigns, commented analyst Michael Baker from the research house DA. Davidson. Although this puts pressure on margins in the short term, it forms the basis for a recovery in business in the second half of the year. Thomas Hayes, a manager at wealth manager Great Hill, said other retailers would certainly try to get rid of their full stocks with price discounts. However, there is a positive side effect: these discounts have a medium-term inflation-dampening effect.
However, Target investors have focused on the company's falling profits. The shares therefore fell by more than two percent. Competitors such as Walmart and Costco lost up to 1.2 percent in their wake. While the lowered forecasts are not a disaster, the risk of an economic downturn is growing, said Andrea Cicione, chief investment strategist at research house TS Lombard. Currently, one is better advised to use price increases to take profits as setbacks to get started.
Bucking the industry trend, Kohl's rose 8.2 percent to $45.59 after the department store chain entered exclusive talks to be acquired by Franchise Group. Kohl's shareholders should accept the venture capitalist's offer of $60 a share, advised Morningstar analyst David Swartz. Since he expects Kohl's margins to fall, it is risky to wait for a higher offer. Tupperware shares were also in demand, gaining 2.2 percent. The food storage container supplier is parting with its cosmetics division Nutrimetics as part of the focus on its core business. The company did not provide information about the buyer or the price.
A media report about possible changes for brokerage houses, on the other hand, pushed the shares of the trading platform Roobinhood Markets seven percent to $ 8.08 in the red. According to the Wall Street Journal, the head of the US Securities and Exchange Commission, Gary Gensler, wants to explain extensive change plans for brokers in a speech on Wednesday. Robinhood became known as part of the course capers at the US video game retailer GameStop. Many small investors had used the app for their speculative transactions with cryptocurrencies.
The industrial metal copper, on the other hand, fell by 0.3 percent to $9723 per ton. "As long as the Chinese authorities stick to their zero-Covid strategy, the recovery of the Chinese economy will be a stop-and-go affair," said analyst Edward Meir of brokerage house ED
