Stocks opened lower on weak earnings from Target and concerns about rising interest rates.

From Yahoo Finance: 2025-05-21 12:05:00

Stocks on Wall Street were broadly lower just before 11 a.m. EDT, with the Dow 30 down 0.5% and the Russell 2000 dropping nearly 1.2%. Bill Ackman’s Pershing Square invested heavily in a major tech company, according to recent SEC filings.

Stocks opened lower on Wednesday due to weak earnings from retailers Target and TJX, along with concerns about rising interest rates. This would mark the second consecutive market decline if losses hold. Major indices were down, with the S&P 500 off 0.4%, the Nasdaq down 0.2%, and the Dow Jones Industrial Average falling 316 points.

Home Depot shares slipped slightly as the company reassured no price increases due to Trump tariffs. The weakness in share price is attributed to the company’s exposure to housing and home improvement markets, impacted by higher interest rates. Target shares dropped 5.6% in premarket trading after reporting a 3.8% decrease in comparable sales from a year ago.

Futures trading indicated significant drops for the S&P 500, Nasdaq-100, and Dow Jones Industrial Average. Lowes shares were up 2%, despite lower sales. Target cut its annual earnings guidance to $8 to $10 a share, citing tariff uncertainties and consumer economic concerns. Walmart made a similar warning on imported goods and President Trump criticized the company, suggesting they absorb tariff costs.

Target saw decreases in multiple product lines, with home furnishings down 8.5% and apparel down 4.8%. Food and beverage sales were up slightly. Bond yields rose due to concerns about a tax-cut bill increasing the federal deficit. Crude oil and gold prices were on the rise, while Treasury yields hit yearly highs.



Read more at Yahoo Finance: Stocks broadly lower; Target shares in focus