US stocks fall as Target plunges on weak results

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NEW YORK, May 18 — Wall Street stocks opened significantly lower today, reversing the prior session’s rally following disappointing Target results that sent shares of the...

NEW YORK, May 18 — Wall Street stocks opened significantly lower today, reversing the prior session’s rally following disappointing Target results that sent shares of the retailer tumbling.

Target, the North American-focused big-box retailer, plunged more than 25 per cent after earnings missed expectations despite higher sales. The company pointed to the hit from higher operating costs in results that echoed those of bigger rival Walmart, which had an ugly day yesterday after also citing profit pressures.

The weak results come in a market already buffeted by recession fears as the Federal Reserve raises interest rates to counter inflation.The broad-based S&P 500 shed 1.5 per cent to 4,026.12, while the tech-rich Nasdaq Composite Index dropped 1.8 per cent to 11,769.95. Among other companies reporting results, home-improvement retailer Lowe’s declined 2.2 per cent, while the discount company TJX gained 7.8 per cent. — AFP

 

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