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Stock Market Today: Dow Slips on Target Earnings Miss; Chips Dip to Dent Tech

Published 2022-08-17, 04:08 p/m
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By Yasin Ebrahim

Investing.com – The Dow fell Wednesday, as investors weighed up minutes from the Federal Reserve meeting that were less hawkish than expected, and disappointing quarterly results from Target weighed on sentiment.

The Dow Jones Industrial Average fell 0.51 or 174 points, the S&P 500 was down 0.7%, and the Nasdaq Composite slumped 1.2%.

Minutes from the Fed’s July suggested the members continue to support hiking rates to a restrictive level, though also backed the idea of easing the pace of rate hikes at “some point.”

Treasury yields eased from highs following the news, helping big tech recover some losses with Apple (NASDAQ:AAPL) up more than 1%.

But a fall in semiconductor stocks weighed on the overall tech sector after Analog Devices (NASDAQ:NASDAQ:ADI) shares tumbled over 5% despite quarterly results that topped Wall Street on both the top and bottom lines.

Advanced Micro Devices Inc (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ:NVDA) also pressured chip stocks, falling more than 1% and 2%, respectively.

Retailers, meanwhile, gave up some of their gains from a day earlier after Target Corporation (NYSE:TGT) reported second-quarter earnings of 39 cents that fell well below analysts’ estimates even as the retailers slashed prices to boost sales.

Lowe’s Companies Inc (NYSE:LOW) was flat as weaker than expected quarterly revenue and comparable store sales offset earnings of $4.67 per share that topped estimates.

Krispy Kreme (NASDAQ:DNUT), meanwhile, slipped nearly 12% after its quarterly results missed estimates, though the doughnut chain said input costs had eased in recent weeks.

The slew of quarterly reports from retailers arrived on the heels of better-than-expected monthly retail sales data, led by stronger online, or non-store sales.

“[T]his year's back-to-school shopping season appears to be largely playing out online,” Jefferies said.

In other news, Manchester United (NYSE:MANU) gained more than 6% on reports that the Glazer family, the current owners of the iconic football club, was open to selling a minority stake.

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