Why did Target stock fall on 7 October?
Written after the close on
Target −2.21%
Target fell sharply as holiday price cuts began. Over the last five trading days Target fell clearly, going the other way while the broad market and the consumer staples sector both rose clearly. The likeliest driver is the wave of price cuts on thousands of home, apparel and accessories items and the launch of its members' deal event, which investors may read as margin pressure rather than as a traffic win, even though store checks suggest shoppers are responding. A softer consumer-confidence backdrop and rising Treasury yields — the interest rates the government pays to borrow, which raise costs across the economy — likely added to the drag. Watch the mid-November earnings report, where the market will look for whether cheaper prices actually pulled in more shoppers.
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