Target’s stock drop casts a pall over the retail sector


The historic sale of Target Corp’s TGT stock,
casts a shadow over the retail sector, as S&P 500 SPX 90 stocks,
92 Consumer Discretionary and Staples companies are trading lower. Target’s stock was the weakest of the bunch, falling 24.7% to an 18-month low, as well as the biggest one-day drop since Black Monday (October 19, 1987), after a report on extremely disappointing profits. SPDR Consumer Staples Select Sector ETF XLP,
fell 4.7% as all 32 components lost ground, while SPDR Consumer Discretionary Select Sector ETF XLY,
of which Target is a component, also fell 4.7% with 58 of the 60 components down. Among some of the more sympathetic losers, shares of fellow discount retailers Dollar Tree Inc. DLTR,
fell 17.2% and Dollar General Corp. CEO,
slid 12.2%, while membership-based warehouse retailer Costco Wholesale Corp COST,
fell 11.6%. Pharmacy chain and healthcare services company Walgreens Boots Alliance Inc. stock WBA,
fell 6.6% and was the DJIA of the Dow Jones Industrial Average,
greater decline. WMT shares of Walmart Inc.,
fell 5.9%, after falling 11.4% on Tuesday due to disappointing results. The two retail winners were shares of discount retailer TJX Companies Inc. TJX,
which rose 9.1% after lower profits, and Ross Stores Inc. ROST,
which veered to 2.6%.


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