S&P 500 Gains and Losses Today: Target and TJX Shares Soar as Store Traffic Rises
Major U.S. equities indexes turned higher on Wednesday as investors digested retailer earnings and minutes of the Federal Reserve’s most recent policy meeting.
Strong Performance from Target and TJX
Retail giant Target (TGT) topped analysts’ forecasts with its second-quarter revenue and earnings per share (EPS) results. Its shares soared 11.2%. After declining in the previous quarter, comparable store sales returned to year-over-year growth during the period, reflecting an increase in store traffic and gains in digital sales versus a year ago. Following the strong quarter, Target boosted its full-year profit guidance.
Target was not the only retailer to see its stock price increase on Wednesday. Shares of TJX Companies (TJX) jumped 6.1%, reaching an all-time high, as the operator of TJ Maxx, HomeGoods, and Marshall’s beat quarterly sales and profit expectations. Consumers seeking value and discount options helped the company achieve comparable store sales growth during the quarter, with traffic rising across brands. TJX also announced an investment in Brands for Less, a discount retailer with a presence in the Middle East, as it aims to expand its international footprint.
Keysight Technologies Shines in the S&P 500
Keysight Technologies (KEYS) shares skyrocketed 13.9%, marking the top daily performance in the S&P 500. The company posted better-than-expected results for its fiscal third quarter. Although revenue was down slightly from a year ago, Keysight reported a year-over-year increase in orders, suggesting its business remains resilient even as customers in various end markets navigate macroeconomic headwinds.
American Express Faces Downgrade
American Express shares dropped 2.6% after Bank of America downgraded the credit card issuer’s stock to “neutral” from “buy.” Analysts questioned Amex’s future growth potential, pointing to an uncertain outlook for consumer spending, even among the company’s higher-end clients.
Franklin Resources Faces Regulatory Investigation
Shares of investment manager Franklin Resources (BEN) plunged 12.6% after the firm announced that Ken Leech, co-chief investment officer (CIO) of its Western Asset Management Unit, took a leave of absence after he received a Wells Notice from the Securities and Exchange Commission (SEC). In a regulatory filing last month, Franklin said it was conducting an internal investigation into certain trading activity in the unit’s managed accounts.
Conclusion
Overall, the S&P 500 ended the mid-week trading session with a gain of 0.4%, while the Nasdaq was up 0.6%. Strong performances from retailers Target and TJX, as well as Keysight Technologies, contributed to the positive market sentiment. However, American Express and Franklin Resources faced challenges that led to declines in their stock prices. Investors will continue to monitor these developments and their impact on the broader market.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as investment advice. It is important to do your own research and consult with a financial advisor before making any investment decisions.
