Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

Stock market today: Dow stumbles on Micron-led tech slump, Target tanks retailers

Published 11/16/2022, 04:02 PM
Updated 11/16/2022, 04:05 PM
© Reuters
US500
-
DJI
-
MU
-
TGT
-
LOW
-
IXIC
-
AAP
-

By Yasin Ebrahim

Investing.com -- The Dow slipped into red late into the close Wednesday, pressured by a Micron-fueled slump in tech and heavy losses in retailer Target just as  better-than-expected retail sales data renewed fears of more hawkish Federal Reserve monetary policy tightening.

The Dow Jones Industrial Average slipped 0.1%, or 39 points, the Nasdaq fell 1.54%, and the S&P 500 fell 0.8%.

The Commerce Department reported that retail sales rose 1.3% last month, topping estimates for the 1.0% gain expected. The retail sales control group – which has a larger impact on U.S. GDP –  rose 0.7% beating expectations for a 0.3% rise. 

The strong data is a “decent indication that nominal demand remains fairly robust...suggesting that the Fed still has more work to do to bring it in line with aggregate supply,” Jefferies said in a note.

Tech stocks took a breather from their recent melt-up following pressure from a Micron-led slump in semiconductor stocks.

Micron Technology (NASDAQ:MU) fell more than 6% after the chipmaker warned that the market outlook for 2023 “has weakened,” and cut capital expenditure amid plans to trim supply.

“We do believe there is potential for a longer demand trough that would potentially weigh on the broader technology space (e.g., a recovery that starts later in 2023 or is weaker than projected),” Wedbush said following Micron’s announcement.

Target (NYSE:TGT) fell 13%, pushing the broader retail sector deep in the red after the retailer reported a 50% slump in profit and cut its fourth-quarter guidance, warning of a weaker holiday quarter.

Lowe’s (NYSE:LOW) climbed 3% bucking the trend lower after reporting third-quarter results that topped analysts’ estimates.

Advance Auto Parts (NYSE:AAP) fell 15% after reporting quarterly results that missed on both the top and bottom lines, prompting a string of downgrades from analysts on Wall Street. UBS downgraded the stock to neutral from buy, while Wedbush cut its price target on the stock to $165 from $200.

Despite the move lower in the broader market some on Wall Street continue to bet that stocks will likely grind higher into the year-end, though the advance isn’t likely to be smooth.

“We like the markets overall to push modestly higher into year-end, however this should not assume it will be a smooth trade, as macro uncertainty remains elevated even after some of the inflation data has started to cool,” Janney Montgomery Scott said in a note.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.