(AOF) – US markets fall: The S&P 500 lost 0.49% around 5:30 p.m. Today’s statistics paint a mixed picture of the US economy. While retail sales beat expectations, industrial production fell unexpectedly. In terms of value, the distribution sector is under pressure from Target’s poor results. The death of 2 people in Poland after a rocket crash also calls for caution. As of 5:30 p.m., the Dow Jones index was up 0.05% to 33,611 points, while the Nasdaq Composite was down 1.18% to 11,224 points.
Target fell 12.76% to $155.15 on the New York Stock Exchange after the American discounter implemented a $2-3 billion austerity plan over three years. The company has also indicated that layoffs or hiring freezes are not part of its current plans. So, with high inflation and “dramatic shifts” in consumer behavior, Target expects the holiday season to be a tough one.
Today’s economic numbers
The NAHB Homebuilder Confidence Index came in at 33 in November, while it was expected at 36 after 38 in October.
Industrial production in the US fell 0.1% in October after rising 0.1% in September, a figure revised from +0.4%. An increase of 0.2% was expected. Production capacity utilization increased from 80.1%, revised from 80.3%, to 79.9%. 80.4% were expected.
US import prices fell 0.2% in October after falling 1.1% in September, a revised figure of -1.2%.
Retail sales in the United States rose 1.3% in October. They were expected to rise 0.9% while remaining stable in September. Ex-autos retail sales rose 1.3% versus expectations for a 0.6% increase.
The values follow today
Cruise specialist Carnival Corporation has issued $1 billion in convertible bonds due 2027 that pay 5.75% annual interest. The conversion price is approximately $13.39 per share. This represents a premium of approximately 20% over the last reported sale price of the Company’s common stock on the New York Stock Exchange on November 15, 2022.
The American cosmetics group Estée Lauder announced on Tuesday that it would buy American designer Tom Ford’s company for $2.3 billion. Tom Ford will remain the official founder of his company until the end of 2023. Estée Lauder hopes to complete operations in the first half of 2023 and will now hold the intellectual property rights to all products signed by the Texas-based designer and stylist. With Tom Ford Beauty, it offers one of the strong assets of its brand portfolio.
Credit Suisse began tracking Qualcomm with an Outperform rating and a price target of $150. This is his favorite stock among smartphone-exposed stocks that could get a deal with Apple. The market research firm believes that semiconductors are in a period of sustained long-term growth, with factors such as AI, cloud computing and automotive all driving further growth.
Target, whose stock is down 14% in transactions before Wall Street opened, expects a tough time ahead of the holiday season. High inflation, “dramatic changes” in consumer behavior… The American discounter is planning a savings plan of two to three billion dollars over three years. For the third quarter ended October, Target posted adjusted earnings per share of $1.54, up almost half. Net income fell 52% to $712 million.