Tech-Led Bloodbath Hurting Retail Stocks: TGT, BBY, KSS & More
Zacks Investment Research | Nov 19, 2018 10:19PM ET
Tuesday, November 20, 2018 Stocks continue to sell off in today’s pre-market, after another bruising Monday in regular-day trading. Downward expectations in important economic units like iPhone shipments are helping pull down Apple (NASDAQ:AAPL) and its digital suppliers like today’s Bear of the Day, Western Digital (NASDAQ:WDC) . Crude oil prices continue to lag, down another 1% or so on both WTI and Brent indexes. And fresh quarterly earnings results from retailers this morning is not helping matters. Apple is only the most recent FAANG stock being taken down to correction levels (20% off its bull-market highs), following Facebook (NASDAQ:FB) , Netflix (NASDAQ:NFLX) and Amazon (NASDAQ:AMZN) , which have already reached that inflection point. Questions relating to China’s economy — one of Apple’s most important markets — are keeping AAPL share growth snuffed for now, with shares down another 3% ahead of today’s opening bell. Housing Starts for October haven’t helped, either. While we saw a rebound in new home building last month, the 1.228 million seasonally adjusted, annualized units rose 1.5%, nearly 100 basis points beneath expectations. A dearth in single-family homes continues to weigh on this market, down 1.8% month over month and -2.6% year over year. Only increases in the multi-family segment are buoying these headline figures; single-family homes are too expensive for new buyers to enter the market, for myriad reasons. Building Permits fell roughly half a percentage point to 1.26 million seasonally adjusted annualized units. September totals, however, bumped up from the originally reported 1.24 million to 1.27 million. Building permits are a proven forward indicator of future starts. Big-box major Target Corp. (NYSE:TGT) has sunk 12% in pre-market trading on its bottom-line Q3 miss this morning, although revenues of $1.82 billion outperformed the expected $17.59 billion in the Zacks consensus. Earnings actually grew 20% year over year to $1.09 per share, but the bear-market climate right now is taking most, if not all, companies unfortunate enough to be reporting this morning out to the woodshed. Questions or comments about this article and/or its author? Click here>>
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