Losses on Wall Street, aggravated by the new Target warning

The main indicators of Wall Street in Tuesday’s trading are moving with a negative sign as the rise of bond yields and the latest warning of Target for the course of its profitability aggravate the climate.

Bond yields returned to an upward trajectory at the beginning of the week, with the 10-year yield climbing above the psychological level of 3% on Monday as investors await the announcement of inflation data in May at the end of the week. The 10-year yield is currently slightly below 3.00%

The May measure will help investors get a better picture of the central bank’s next moves as the debate over the need for higher interest rate hikes by 50 basis points continues to curb inflation.

At the same time, Federal Reserve executives are forced to abstain from public statements ahead of the central bank meeting on June 14 and 15, exacerbating uncertainty. The European Central Bank is meeting on Thursday and is expected to pave the way for raising interest rates in July, launching a policy tightening.

Earlier today, the Reserve Bank of Australia surprised markets by raising interest rates by 50 basis points, the largest rate hike in 22 years.

Indicators – Statistics

On the board, the Dow Jones lost 175.36 points or -0.53% at 32,740.42 points, while the S&P 500 fell 18.42 points or -0.45% to 4,103.01 points. The technological Nasdaq slips by 54.33 points or -0.45% to 12,007.04 points.

Of the 30 stocks that make up the Dow Jones industrial average, only six are moving with a positive sign and 24 with a negative one. Chevron was up $ 1.89, or 1.07%, at $ 178.72, followed by Johnson & Johnson at $ 177.92, up 0.86% and Salesforce. , 79% to $ 184.32.

On the other hand, the three stocks with the biggest losses are Home Depot (-2.53%), Walmart (-2.13%) and Walgreens Boots Alliance (-1.50%).

In business development, Target Corp. slipped 3.7% as the retail chain downgraded its profitability forecasts for the second time.

In particular, Target Corp cut its quarterly margin estimates just a few weeks ago, warning that it would have to offer bigger discounts and reduce product stockpiling as inflation cuts consumer spending.

The retailer said it would cut prices in the second quarter, cancel orders to optimize inventory, speed up parts of the supply chain and prioritize categories such as food and household necessities.

Kohl’s title jumped 9.8% after a Wall Street Journal article reported that the Franchise Group is in talks to buy the department store for about $ 8 billion.