U.S. Stocks Rise After Target’s Brighter Outlook Boosts Retail Shares
U.S. equities traded slightly higher on Thursday as retailers rose, led by Target. The Dow Jones industrial average rose 13 points, with Wal-Mart, Goldman Sachs and Apple contributing the most gains. The S&P 500 gained 0.1 percent, with Target among the best performers. Shares of Target climbed 2.7 percent after the company said it expects “modest increase” in second-quarter comparable-store sales, a metric closely watched by Wall Street for retail stocks. Target added it expects second-quarter earnings to come in above the high end of the forecast. The stock had traded more than 6 percent higher in the premarket. “Target’s news is a much-needed breath of fresh air for retailers,” said Adam Sarhan, CEO of 50 Park Investments. The SPDR S&P Retail exchange-traded fund (XRT) gained 1.5 percent and was on track for its best day since June 26. Shares of Wal-Mart, Kohl’s, Costco and Macy’s rose as well. Brick-and-mortar retailers have been hit hard this year. In 2017, the XRT has fallen more than 11 percent. Macy’s, meanwhile, has shed approximately 40 percent. Read more at CNBC.
