US stocks were mixed on Wednesday as sentiment was hit by Target’s disappointing holiday guidance and a stronger-than-expected report.
tech-heavy Nasdaq Composite (COMP.IND) was 1.46% less to 11,192.08 points in the morning trade. The benchmark S&P 500 (SP500) was lost 0.68% up to 3,964.60 points. The Dow (DJI) outperformed the other two averages, and the blue-chip index slightly more than 0.01% at 33,596.50 points.
Of the 11 S&P stocks, eight were trading in the red. Technology and Power were at a loss. Contributions rose sharply among beneficiaries.
Retail sales in October rose 1.3% compared to forecasts for a 1% gain. Average sales also increased by 1.3% compared to expectations of +0.4%. The data showed that consumer demand for goods and services is improving despite rising inflation and high interest rates.
Strong commercial interest rates “put market interest rates at risk,” Renaissance Macro wrote. “As Powell said, we don’t know what the process will be but we know it will be enough.”
In other economic news on Wednesday, industrial production for October came in softer than expected at -0.1% versus a rise of 0.2%.
The November NAHB Housing Market Index fell for the 11th straight month to 33 compared to the forecast of 36, while the November Atlanta Fed Business Inflation Expectations came in unchanged at +3.3%.
In financial news, Target ( TGT ) fell after the retail giant missed an earnings call and lowered its guidance for the holidays. The slide in its shares is weighted on some stock names and stock market funds. Advance Auto Parts (AAP) also fell on a disappointing quarterly report. Both companies were among the biggest losers on the S&P. On the bright side, home retailer Lowe’s ( LOW ) advanced after beating expectations.
Among other movers, shares of Carnival (CCL) sank on news of the public offering.
Investors were also monitoring the situation in Europe. Reports a day earlier that a Russian missile had hit Poland raised fears, but those concerns eased on Wednesday after Poland and NATO said the missile may have missed Ukrainian air defenses.
Turning to prices, the 10-year Treasury yield (US10Y) fell 7 basis points to 3.73% and the 2-year yield (US2Y) fell 1 basis point to 4.35%. The dollar index (DXY) was -0.2% at 106.22.