Strong earnings from big-box stores on Wednesday weren’t enough to keep investors from fretting about inflation and retailers’ growth and margins beyond the holidays.
All three of the major averages were lower, despite the positive quarterly reports. A decline in Visa shares pulled the Dow Jones Industrial Average lower. The S&P 500 and Nasdaq Composite dipped slightly, but both are still higher for the week and remain close to their records.
Target, Lowe’s and TJX Companies set the tone for the day with earnings beats. TJX jumped 5.8% and was the biggest gainer in the S&P 500. Shares of Lowe’s rose slightly, but Target shares fell 4.7%.
Investors worried about how Target would handle rising prices after CEO Brian Cornell said the company plans to absorb those costs rather than pass them onto customers.
