Wall St jumps with technology, energy; Targeted news weighs on traders

  • Target’s margin squeeze hits some retail stocks
  • Kohl’s enters sales talks with Franchise Group
  • Indices: Dow up 0.8%, S&P 500 up 1%, Nasdaq up 0.9%

NEW YORK, June 7 (Reuters) – U.S. stocks rallied on Tuesday evening to end higher for the second day in a row as technology and energy stocks gained amid Target Corp’s warning about Excess inventory weighed on retail stocks for much of the session.

Shares of Apple Inc (AAPL.O) soared 1.8% despite news earlier in the day that the company must change the connector on iPhones sold in Europe by 2024 after countries in the EU and lawmakers have agreed on a single charging port for mobile phones, tablets and cameras.

The S&P 500 Technology Index (.SPLRCT) rose 1% and gave the benchmark its biggest boost. Shares of Microsoft Corp (MSFT.O) gained 1.4%.

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The S&P 500 energy sector index (.SPNY) jumped 3.1% to end at its highest level since 2014, with oil prices rising sharply.

Meanwhile, shares of Target Corp (TGT.N) fell 2.3% after the retailer said it should offer deeper discounts and reduce stockpiling of discretionary items. Read more

Equity trading was choppy, with indices falling early in the day, but the market has recovered from recent steep losses.

Recently, “we’ve had a nice rebound…and generally investors are feeling better right now. But we’re really in a bumpy market like we’ve seen all year,” said Tim Ghriskey. , senior portfolio strategist at Ingalls. & Snyder in New York.

“At some point we will bottom out and the market will rise. We find it hard to believe that will be any time soon, given a number of fundamental issues weighing on the market,” he said. “What we saw today from Target is definitely not good consumer news.”

A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 1, 2022. REUTERS/Brendan McDermid

However, long-term US Treasury yields fell after the Target news as it fueled some speculation that the worst of inflation may be in the past.

The Dow Jones Industrial Average (.DJI) rose 264.36 points, or 0.8%, to 33,180.14, the S&P 500 (.SPX) gained 39.25 points, or 0.95%, to 4,160.68 and the Nasdaq Composite (.IXIC) added 113.86 points, or 0.94%, to 12,175.23.

Shares of Walmart (WMT.N) fell 1.2% and the S&P Retail Index (.SPXRT) fell 1%.

Friday’s consumer price data is expected to show inflation remained elevated in May, although core consumer prices, which exclude the volatile food and energy sectors, likely fell. on an annual basis.

Not all retailers were in the red. Shares of Kohl’s Corp (KSS.N) jumped 9.5% after the department store chain entered exclusive talks with retail store operator Franchise Group Inc (FRG.O) over a potential sale that will would value it at nearly $8 billion. Read more

Advancing issues outnumbered declining ones on the NYSE by a ratio of 2.36 to 1; on the Nasdaq, a ratio of 1.69 to 1 favored advancers.

The S&P 500 posted 3 new 52-week highs and 30 new lows; the Nasdaq Composite recorded 35 new highs and 121 new lows.

Volume on U.S. exchanges was 10.38 billion shares, compared to an average of 12.50 billion for the full session over the past 20 trading days.

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Reporting by Caroline Valetkevitch in New York Additional reporting by Devik Jain, Susan Mathew, Mehnaz Yasmin in Bengaluru Editing by Maju Samuel and Matthew Lewis

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