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* Target growth outlook, but stock falls on Q3 margin hit
* EV maker shares rise amid rising demand
* Visa slips after Amazon protests over UK tariffs
* Index down: Dow 0.58%, S&P 0.26%, Nasdaq 0.33% (adds closing price)
NEW YORK, Nov 17 (Businesshala) – Wall Street benchmarks fell lower on Wednesday on inflation fears and supply chain concerns stemming from earnings from retailers, with investors betting on the Federal Reserve to ease rising prices sooner than expected. increased interest rates.
Target Corp was the latest big-name retailer to report positive results, raising its annual forecasts and beating profit expectations, citing an early start to holiday shopping.
But shares of the firm fell 4.7% on Tuesday, tracking a decline in peer Walmart, as both retailers flagged a hit to their third-quarter margins from supply chain issues.
Other retailers reported earnings yet traded low. Macy’s Inc. and Kohl’s Corp. dropped 4.5% and 3.1%, respectively, ahead of Thursday morning posting numbers, and Gap Inc. and Urban Outfitters Inc., on deck the following week, slipped 5.2% and 4.2%.
Some retailers buck the trend. TJX Company Inc. rose 5.8% since August 27, following forecast-beating earnings by the owner of TJ Maxx, an increase in its share buyback program, and forecasts that it was well positioned to meet holiday season demand. Gained edge.
Lowe’s Cos Inc. rose 0.4% after the home improvement chain raised its full-year sales forecast on higher demand. Peer Home Depot also posted strong results on Tuesday.
The Dow was also weighed down by Visa Inc., which Amazon.com Inc. said it would stop accepting operator-issued cards in the UK due to high transaction fees.
While strong retail data this week suggests that the rise in inflation has not hit economic growth so far, investors fear further price hikes could hurt growth and prompt the Federal Reserve to prematurely tighten policy. can be pushed in.
“You’ve got inflation at 31-year highs, but we’re at the lowest interest rates ever, so those things don’t add up,” said Salem Abraham, portfolio manager at Abraham Fortress Fund.
While supply chain issues will ease as COVID moves into endemic conditions, a massive increase in the money supply will ensure that inflation remains a serious problem for years, he added.
Contrasting comments from Fed chairmen James Bullard and Mary Daly on Tuesday also created further uncertainty in the markets.
“For as long as the Fed can… but if[inflation]continues to go higher, and you continue to see inflationary pressures, it becomes a question of how much and how often[rates]) will grow,” said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.
Strong retail earnings this week will kick off a third-quarter earnings season that pushed the Wall Street index to record highs.
Chipmaker Nvidia Corp fell 3.1% ahead of its earnings call on Wednesday after the bell. The broader Philadelphia Semiconductor Index lost 0.7% after hitting a record low the previous day.
The Dow Jones Industrial Average fell 211.17 points, or 0.58%, to 35,931.05, the S&P 500 fell 12.23 points, or 0.26%, to 4,688.67, and the Nasdaq Composite fell 52.28 points, or 0.33%, to 15,921.57.
Electric vehicle makers were largely positive. Tesla and Canu both rose 3.3%, after the latter speculated that it would begin US production sooner than expected. Sono Group NV gained 155% on its Nasdaq debut.
But Rivian Automotive Inc. is down 15.1% since the stock’s listing last week, as investors profited from a nearly 71% winning streak.
Volume on US exchanges stood at 10.6 billion shares, compared to an average of 11.09 billion for the full session over the past 20 trading days.
The S&P 500 posted 41 new 52-week highs and six new lows; The Nasdaq Composite posted 115 new highs and 244 new lows. (Reporting by Amber Warrick and Devik Jain in Bengaluru and David French in New York; Editing by Maju Samuel and Lisa Shumaker)