U.S. markets
U.S. stocks traded in the red on Wednesday, with tech stocks leading the decline. The Dow Jones Industrial Average fell 1.64% to 33,503, the S&P 500 Index retreated 1.5% to 4,064 and the Nasdaq Composite Index was down 1.25% at 13,136.
Gainers
- Take-Two Interactive Software Inc. (TTWO, Financial) +4.5%
- Maxim Integrated Products Inc. (MXIM, Financial) +2.2%
- Salesforce.com Inc. (CRM, Financial) +1.8%
- Walmart Inc. (WMT, Financial) +0.1%
- McCormick & Co. Inc. (MKC, Financial) +0.3%
Losers
- Freeport-McMoRan Inc. (FCX, Financial) –7.8%
- Nov Inc. (NOV, Financial) -6.2%
- Devon Energy Corp. (DVN, Financial) -6.1%
- Progressive Corp. (PGR, Financial) -5.5%
- Nucor Corp. (NUE, Financial) -5.7%
- Gap Inc. (GPS, Financial) -5.5%
Global markets
The main European stock markets traded in the red. The U.K.'s FTSE 100 fell 1.82%, Germany's Dax slid 2.52%, France's CAC 40 slipped 2.30% and Spain's Ibex 35 sank 2.10%.
In Asia, Japan's Nikkei 225 fell 1.28%, India's BSE Sensex retreated 0.58%, Hong Kong's Hang Seng advanced 1.42% and China's Shanghai Composite was down 0.51%.
Target releases earnings report
Shares of Target Corp. (TGT, Financial) gained more than 4% on Wednesday to $215.34 after the company posted its fiscal first-quarter results.
Target's revenue grew 23.3% year over year to $24.2 billion, beating expectations by $2.43 million. The company posted earnings of $3.69 per share, tppping estimates of $2.25.
CEO Brian Cornell had the following to say:
"Our performance in the first quarter was outstanding on every measure, and showcased the power of putting our stores at the center of our strategy. Store comp sales grew 18.0 percent in the quarter, even as they also fulfilled more than three quarters of Target's digital sales - including more than 90-percent growth of our same-day services. Importantly, market-share gains of more than $1 billion in the first quarter, on top of $1 billion in share gains a year ago, demonstrate Target's continued relevance with our guests, even as they have many more shopping options compared with a year ago."
Comparable sales grew 22.9%, reflecting comparable store sales growth of 18.0% and comparable digital sales growth of 50%. The operating income margin was 9.8% in 2021 compared with 2.4% in 2020. The gross margin was 30%, up from 25.1% last year.
Further, Target paid $340 million worth of dividends, compared with $332 million last year. This was a 3.0% increase in regard to the dividend per share.
Looking ahead to the second quarter, the company expects mid-to-high single-digit growth in comparable sales. It expects the operating margin will be up from 7.2% in 2019, but below 10%.
Target's shares have gained 22% since the beginning of the year versus the S&P 500's gain of 10%.
Ken Fisher (Trades, Portfolio) reduced his position by 13% to 3959 shares and Dodge & Cox cut its position by 4.1% to 159,825 shares. Barrow, Hanley, Mewhinney & Strauss boosted its holding by 6.4% to 867 shares, while Mario Gabelli (Trades, Portfolio) added 3% to his portfolio to 6,162 shares.
Disclosure: The author holds no positions in any stocks mentioned.
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