London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

US stocks fall as investors weigh solid retail sales data against Target's warning of weaker holiday spending

US stocks fall as investors weigh solid retail sales data against Target's warning of weaker holiday spending

The strong retail sales growth in October reinforces expectations that the Fed will hike interest rates again in December by at least 50 basis points.

US stocks fell on Wednesday as investors weighed Target's disappointing third-quarter earnings results against solid retail sales data.

Retail sales jumped 1.3% in October to $694.5 billion, well ahead of estimates for a 1% gain, led by higher gas prices and auto sales. Sales were up 0.9% when excluding gas and auto sales. The data showed the ongoing resilience of the consumer despite elevated inflation and higher interest rates.

While retail sales jumped in October, one retailer was unable to fully capitalize off those gains. Target reported disappointing third-quarter earnings, which showed a drop in profits and a murky outlook for the upcoming holiday shopping season. The company also said it would launch a $3 billion cost-cutting plan.

"Although Target reported disappointing third quarter results, the October retail sales report underscores that a more discerning US consumer continues to spend. While credit cards are being used more frequently, consumers are taking advantage of earlier than usual holiday sales," LPL's chief global strategist Quincy Krosby told Insider.

The strong retail sales growth in October reinforces expectations that the Federal Reserve will hike interest rates once again in December by at least 50 basis points.

Here's where US indexes stood at the 4:00 p.m. ET close on Wednesday:

*  S&P 500: 3,959.10, down 0.82%

*  Dow Jones Industrial Average: 33,556.60, down 0.11% (36.32 points)

*  Nasdaq Composite: 11,183.66, down 1.54%

Here's what else happened today:


*  The rate of inflation in the UK accelerated in October to hit a new four-decade high of 11.1% amid steep price hikes in food and energy.

*  The US and China look like they're moving towards a military conflict over Taiwan that would crush economic growth, influential investor Ray Dalio warned.

*  Authorities in the US and Bahamas are in talks to possibly bring Sam Bankman-Fried to the US for questioning, according to Bloomberg.

*  Target stock fell 15% after the retailer revealed a disappointing third-quarter earnings report to investors.

*  The average 30-year fixed mortgage rate fell below 7% in its biggest weekly drop since July as inflation pressures show signs of easing.

*  Citadel's Ken Griffin warned that the US economy would enter an "immediate great depression" if China invades Taiwan and cuts off access to its semiconductor industry.

In commodities, bonds and crypto:


*  West Texas Intermediate crude oil fell 1.62% to $85.51 per barrel. Brent crude, oil's international benchmark, dropped 1.12% to $92.81.

*  Gold rose 0.11% to $1,778.80 per ounce.

*  The yield on the 10-year Treasury fell 10 basis points to 3.68%.

*  Bitcoin dropped 1.96% to $16569, while ether fell 3.80% to $1,209.

Comments

Oh ya 3 year ago
Cant pile the BS much higher. Amazon firing 10.000. Huge sales at retail because they can not sell there stuff. Trucking companies parking trucks because no freight. Orders being canceled in china for American stores. Ya the economy is great, Biden said so.

Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×