Here are the key news items that investors should be aware of as they begin their trading day:
1. Bullish markets ahead
The S&P 500 is inching closer to a new record, with Tuesday’s gains bringing it within 1% of its all-time high set in January 2022. The Dow climbed by over 250 points, while the Nasdaq surpassed 15,000 for the first time since early 2022. Wednesday’s agenda includes the release of consumer confidence data and existing home sales figures. However, futures remained relatively quiet in the morning as investors await further market developments.
2. Reevaluating Target’s closures
Target caused a stir when it announced the closure of nine stores in cities like Seattle, New York, Portland, and the San Francisco Bay Area, citing concerns over crime and violence. Yet, a new investigation by CNBC’s Gabrielle Fonrouge indicates that nearby stores actually experience higher crime rates, raising doubts about Target’s official explanation for the closures. To delve deeper into the matter, read the full investigation.
3. The resilience of e-commerce
E-commerce has made significant strides since the onset of the Covid pandemic, and it continues to dominate amid the recovery. A recent CNBC All-America Economic Survey revealed that 57% of respondents considered online shopping sites one of their top destinations for holiday gifts this year, up from 51% in the previous year. Unsurprisingly, Amazon remained the go-to online shopping destination for the majority, garnering the highest preference at 74%. However, Walmart saw an improvement from last year, with 16% of respondents now choosing it as their primary online shopping platform, compared to 12% in the previous survey.
4. Walmart expands partnership with Affirm
Retail giant Walmart has expanded its collaboration with buy now, pay later provider Affirm. Under the new agreement, Walmart shoppers will be able to utilize the service at self-checkout kiosks across thousands of U.S. stores. Affirm’s stock jumped by 15% following the news. The move comes in response to data showing that over half of American shoppers desire a buy now, pay later option at physical store checkout lanes, in addition to online shopping carts. According to Affirm executive Pat Suh, their research also revealed that 76% of consumers would either delay or abandon a purchase without Affirm.
5. FedEx revises revenue outlook
Shipping firm FedEx lowered its revenue outlook for the fiscal year for the second consecutive quarter, with weaker demand taking a toll on its financial performance. As a result, the company’s shares fell by over 10% during extended trading. While FedEx’s revenue of $22.17 billion, as well as its adjusted earnings per share, fell short of analysts’ expectations, the stock has seen significant gains this year, outperforming the broader market with a nearly 62% increase by Tuesday’s close.
Source (CNBC)
