By Associated Press Business Writer Stan Choe
NEW YORK (AP) Following the previous day’s slump for Nvidia, Palantir, and other darlings caught up in the craze around artificial intelligence technology, Wall Street is holding a little steadier on Wednesday.
The S&P 500 had a 0.1% decline after hitting an all-time high last week and suffering its third consecutive loss. At 9:35 a.m. Eastern time, the Nasdaq composite was down 0.4% and the Dow Jones Industrial Average was up 83 points, or 0.2%.
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Big American retailers’ conflicting earnings reports contributed to the market’s restraint.Following a result for the most recent quarter that above analysts’ estimates, Lowe’s stock increased 2.8%. Additionally, it announced that it has reached an agreement to pay approximately $8.8 billion to acquire Foundation Building Materials, a distributor of ceiling systems, drywall, and other interior building supplies.
The firm that owns TJ Maxx and Marshalls, TJX, saw a 6.2% increase in stock after exceeding expert predictions for revenue and earnings. CEO Ernie Herrman stated that TJX is witnessing good demand at all of our U.S. and foreign businesses and that its current quarter is off to a strong start. The company has increased its profit prediction for the entire fiscal year.
Target, on the other hand, fell 10.1% despite just exceeding analysts’ spring earnings projections. According to the faltering business, insider Michael Fiddelke, a 20-year veteran, will take over as CEO once Brian Cornell steps down on February 1. Although he assisted in revitalizing the business, it has had difficulty recovering from poor sales in the more cutthroat retail environment following the COVID-19 pandemic.
After releasing a profit prediction for the next fiscal year that fell short of Wall Street’s projections, Estee Lauder saw a 2.3% decline. According to the cosmetic company, tariffs will reduce its future earnings by about $100 million.
After the furniture manufacturer’s springtime profit and revenue fell short of analysts’ projections, La-Z-Boy fell 14.4%. According to CEO Melinda Whittington, the company is battling with weaker industry demand and is considering possible solutions to deal with the financial strain from non-core business operations.
Although not as much as the day before, tech stocks were under pressure once more. Nvidia fell 0.9% after dropping 3.5% on Tuesday. In addition to its 9.4% loss the previous day, Palantir Technologies had a 2.1% decline.
They have been increasingly criticized for their stock prices rising too quickly and too high in the midst of the AI craze, making them too costly.
When Federal Reserve Chair Jerome Powell delivers a much-anticipated speech in Jackson Hole, Wyoming, on Friday, Wall Street is poised to receive the most significant news of the week. The Fed has already made significant policy announcements there, and Wall Street is hoping Powell will allude to an impending interest rate decrease.
This year, the Fed has maintained its main interest rate at its current level, mostly due to concerns that President Donald Trump’s tariffs may lead inflation to rise. However, a surprise poor report on national job growth might be overshadowing that.
Expectations of impending interest rate reduction have caused Treasury yields to plummet, and as of late Tuesday, the yield on the 10-year Treasury was still at 4.30%.
Indexes from Europe and Asia were mixed in foreign stock markets.
Despite a report that stated that inflation in the United Kingdom increased more than anticipated through July, partly as a result of skyrocketing travel and food prices, London’s FTSE 100 increased 0.7%.
After Japan revealed that its exports decreased marginally more than anticipated in July due to pressure from higher tariffs on goods going to the United States, Tokyo’s Nikkei 225 slumped 1.5%. Additionally, imports decreased from a year before.
Hang Seng of Hong Kong increased by 0.2%. Following the CEO’s announcement that the business’s yearly revenue could surpass $4 billion this year and the launch of a miniature version of its well-known Labubu dolls, shares of the Chinese toy giant Pop Mart International Group surged 12.5%.
Contributions were made by AP Business Writers Matt Ott and Yuri Kageyama.
