Tuesday's session on Wall Street begins with declines in most stock market benchmarks. Negative sentiment is fueled by persistently rising yields on 10-year U.S. Treasury bonds and large discounts in the Retail sector, particularly Target (TGT.US), which cut its margin forecasts for the coming quarters, pointing to major problems with excess inventory and transportation costs.
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Create account Try a demo Download mobile app Download mobile appUS100, D1 interval. The benchmark of technology companies started today's session with declines, which, however, are losing intensity and have tested resistance at the level of 12,500 points. At the moment, the key seems to be how share prices last will react to this level. A sustained breakout lower may trigger activation of the supply side. On the other hand, a breakout above this level will maintain the upward movement that has been going on since the end of May. Source: xStation 5
Market News:
Target (TGT.US) is losing over 8% at the beginning of today's session. The company announced that earnings will suffer in the near term as the company retires unneeded merchandise, cancels orders, and takes aggressive steps to get rid of excess inventory. Target expects operating margin levels to be around 2% in its fiscal second quarter. This forecast is significantly lower than the one so presented 3 weeks ago, when the news triggered a 25% drop in the stock.
Target (TGT.US), D1 interval. Pessimistic data from the company caused a bearish price gap on shares of the retailer, which reached its range of minimums from May 24. Source: xStation 5
Sentiment among retailers is trying to improve with Kohl's (KSS.US) gaining over 10% at the open of today's session. Franchise Group is offering to buy Kohl's at $60 per share, a more than 40% premium over Monday's close.
The U.S. FDA is expected to approve the use of Novavax's (NVAX.US) vaccine for Covid-19 today, Shares of the company are currently gaining over 3.5%.
GitLab (GTLB.US) shares are gaining more than 9.3% at the open of today's session after releasing better-than-expected quarterly results. The company generated an 18 cents per share loss versus last year's 53 cents per share. The company's revenue rose to $87.4 million compared to $49.9 million a year ago.
