Futures are down on Target Miss and Powell Inflation Comments on Stock Market Today - 5/18

Futures are down on Target Miss and Powell Inflation Comments on Stock Market Today - 5/18 ...

Stock futures were down after disappointing results from another important retailer and comments from Chairman Jerome Powell about the Fed''s efforts to combat inflation.

Futures for the Dow Jones Industrial Average fell 161 points, or 0.49%, to 32,420, while S&P 500 futures decreased 0.67%, and futures for the technology-heavy Nasdaq decreased 0.499%.

Target (TGT) - Get Target Corporation Reportshares fell after the financial year''s leading Minneapolis retailer reported financial-first-quarter results that fell short of analyst expectations.

Get Lowe''s Companies, Inc. Reportshares were also lower after the Mooresville, N.C., home-improvement chain reported Q1 net income exceeded expectations, while revenue was down.

"Now that the spring has arrived, we are pleased with the improvement in sales we are seeing in May," said CEO Marvin Ellison.

Target''s earnings decline came one day afterWalmart (WMT) - Get Walmart Inc. Reportposted its fiscal-first-quarter earnings and reduced its full-year profit projection, as rising costs ate into the world''s largest retailer''s bottom line.

Despite Walmart''s disappointing report, stocks slowed on Tuesdayamid news thatShanghai had recorded its third consecutive day with no additional covid infections. That''s an important indication that restrictions on business and travel in China''s major city will be lifted.

According to Reuters, the city of 25 million reported a fourth day in a row without further infections in the community.

''''There Could be Some Pain Involved''''

Powell said the Fed was determined to reduce inflation and reiterated that it hoped to do so without citing a rise in unemployment. The Fed is aggressively raising rates to combat price pressures.

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Lowe''s stock falls after earnings fall, and sales are rising.

Target''s stock is falling as Q1 earnings fall short of expectations.

In an interview with the Future of Everything Festival, Wall Street Journal reporter said that, in June and July, the central bank would likely repeat the half-percentage point increase in interest rates it established earlier this month.

"Restoring price stability is a one-off obligation. It''s something we must do," he told the Daily Journal. "There might be a lot of pain."

According to Reuters, the Commerce Department reported that single-family home build and permits in the United States decreased in March as higher mortgage rates increased costs.

Economists polled by Reuters had predicted a yearly increase of 1.765 million units.

Mortgage rates have increased for the first time in a decade. Homes are still in short supply, imposing a lot on the home remodeling industry.

According to the latest statistics, there was a slew of homes that have been approved for development, but on which building has not yet begun.

JPMorgan Chase & Co. Reportshareholders voted against the company''s proposal to pay Chief Executive Jamie Dimon a $50 million retention bonus as part of its compensation plans.

At the annual meeting, less than a third -- 31% -- of the banking giant''s holders voted in favor.

The vote isn''t binding, but The Wall Street Journal described it as a rare rebuke to Dimon''s leadership of the company. Dimon received $34.5 million for as compensation in 2021.

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