Stock Market Today: Nasdaq Slides 0.55%, Target (TGT) Crashes, Lowe’s (LOW) Surges

Nasdaq, S&P 500, and Dow Trade Sideways as Retail and Fed Dominate Headlines

The U.S. equity market opened with muted moves as the Dow Jones Industrial Average (DJIA) edged higher by about 45 points, or 0.1%, while the S&P 500 (^GSPC) slipped 0.2% to around 6,399 and the Nasdaq Composite (^IXIC) lost 0.4% to 21,198. The flat performance followed Tuesday’s sharp technology-driven selloff that erased $385 billion in megacap market capitalization. Weakness in Palantir (PLTR), down nearly 18% from its August 12 all-time high of $186.97, and continued pressure on Nvidia (NVDA), down 0.9%, dragged on the Nasdaq. Investors turned cautious ahead of the Federal Reserve’s July meeting minutes and Jerome Powell’s Jackson Hole speech later this week, events likely to guide expectations for the September policy meeting where futures now imply an 85% chance of a rate cut. Treasury yields held near 4.30% on the 10-year, keeping equities sensitive to bond market shifts.

Target (TGT) Collapses on Sales Drop and CEO Transition

Target Corp. (TGT) shares sank more than 9%, trading near $96, marking the stock’s steepest one-day drop since April. The retailer posted its 11th straight quarter of stagnant or declining sales, with comparable store sales down 1.9% year over year, driven by a 3.2% decline in physical stores while digital transactions grew 4.3%. Gross margins compressed to 29% from 30% a year earlier, reflecting the impact of tariffs and consumer weakness. Adding to pressure, CEO Brian Cornell announced his retirement, with longtime insider Michael Fiddelke stepping in on February 1, 2026. Investors expressed skepticism, viewing Fiddelke as a continuation of strategies that have failed to arrest the retailer’s slide. Shares are down nearly 20% from June highs, leaving Wall Street questioning whether Walmart (WMT) will continue to eat into Target’s customer base.

Lowe’s (LOW) Bucks the Trend with Upbeat Earnings and Acquisition

In contrast, Lowe’s Companies Inc. (LOW) gained over 2% to $261 after reporting second-quarter EPS of $4.33, beating consensus of $4.24. Same-store sales rose 1.1% after a prior quarter decline, signaling resilience in consumer spending on home projects. The company raised fiscal 2025 sales guidance to a range of $84.5–$85.5 billion. In a bold strategic move, Lowe’s announced the $8.8 billion acquisition of Foundation Building Materials, aiming to expand its professional customer base. The stock has advanced nearly 14% year-to-date, outpacing Home Depot (HD), which slipped 1.3% in early trading after reiterating weaker guidance despite posting Q2 EPS of $4.68.

TJX Companies (TJX) Surges as Discount Retail Outperforms

TJX (TJX), the parent of TJ Maxx, rallied over 5% to $142 after beating expectations with EPS of $1.10 versus $1.01 forecast, on revenue of $14.4 billion. The company raised its annual EPS outlook to $4.52–$4.57, up from $4.34–$4.43. Comparable sales grew 3%, reflecting consumer preference for discount shopping amid tariff-driven cost pressures. With sourcing flexibility mitigating import tariffs, TJX appears better positioned than mid-tier retailers like Target.

Estée Lauder (EL) Hit Hard by Tariff Headwinds

Beauty giant Estée Lauder (EL) slid nearly 8% to $88 after guiding fiscal 2026 EPS to $1.90–$2.10, well below estimates of $2.21. Management cited $100 million in expected tariff-related costs, sluggish North American demand, and weakness in global travel retail. Sales declined 12% last quarter, doubling its operating loss. This marks a continuation of multi-quarter underperformance, and with tariffs likely to persist under Trump’s trade policies, recovery could be delayed well into 2026.

Hertz (HTZ) Spikes on Amazon Autos Partnership

Hertz Global (HTZ) jumped more than 9% to $5.57 after unveiling a partnership with Amazon (AMZN) to sell pre-owned vehicles online. Customers will be able to purchase Hertz cars on Amazon Autos, sign contracts digitally, and collect vehicles from Hertz locations. The program launches in Dallas, Houston, Los Angeles, and Seattle before expanding to 45 markets nationwide. Hertz shares are up 42% year-to-date as management pivots its fleet strategy and leverages partnerships to boost profitability.

Semiconductor Sector Under Political Spotlight

Semiconductor stocks fell after reports that the Trump administration may take equity stakes in chipmakers receiving CHIPS Act subsidies. Intel (INTC) slipped 1%, Micron (MU) dropped 3%, while Taiwan Semiconductor (TSM) and AMD (AMD) both edged 1% lower. The U.S. government is considering a roughly 10% ownership stake in Intel, making it the company’s largest shareholder. While such a move secures national security interests, it introduces political uncertainty to corporate governance. The VanEck Semiconductor ETF (SMH) dipped 0.2% on the news, reflecting investor unease about direct government involvement.

Housing Sector: Toll Brothers (TOL) and James Hardie (JHX) Diverge

Luxury homebuilder Toll Brothers (TOL) reported EPS of $3.73 versus estimates of $3.64 on revenue of $2.88 billion. However, new orders dropped 4% year-over-year to 2,388 units, keeping shares capped at $134. CEO Douglas Yearley highlighted the resilience of affluent buyers, with average contract prices rising to $1 million. Meanwhile, James Hardie Industries (JHX) cratered 28%—its worst decline since 1973—after warning of deteriorating U.S. housing demand. Profit margins collapsed as large-ticket remodeling projects stalled, exposing cracks in the broader housing market despite improving housing starts in July.

La-Z-Boy (LZB) and Consumer Discretionary Weakness

Furniture maker La-Z-Boy (LZB) tumbled nearly 20% to $33 after reporting Q1 EPS of $0.44, down from $0.61 a year earlier, and guiding Q2 revenue below expectations at $510–$530 million versus consensus $532 million. Sales in its Joybird brand fell 14%, reflecting reduced consumer appetite for big-ticket discretionary purchases. With the sector under strain, LZB’s struggles reinforce broader concerns about slowing durable goods demand.

Chinese Tech Under Pressure: Baidu (BIDU) and Xiaomi (1810.HK)

Baidu (BIDU) dropped nearly 3% after Q2 revenue slipped 4% year-over-year to 32.71 billion yuan ($4.56 billion), missing estimates. Core advertising declined as China’s economic slowdown weighed, partially offset by strong 23% growth in cloud services. On the other hand, Xiaomi (1810.HK) reported a 31% surge in revenue to 116 billion yuan ($16.2 billion), fueled by strong demand for its new YU7 SUV. EV deliveries reached 81,302 in Q2, putting Xiaomi on pace to exceed 2024 sales and directly challenge Tesla (TSLA) and BYD (1211.HK).

Private Equity and Alternative Assets Face Headwinds

Private equity stocks have lagged in August, with Blackstone (BX), KKR (KKR), Apollo (APO), and Ares (ARES) all down between 2.7% and 5.7%, breaking multi-month rallies. Only Carlyle Group (CG) bucked the trend, up 3.2%. Investors worry about firms’ ability to exit older investments at favorable valuations, raising doubts about returns in a higher-rate environment.

That's TradingNEWS