Dow earns 200 points thanks to good results from Target and Lowe's



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Stocks rose sharply Wednesday morning after the optimistic quarterly results of some of the country's largest retailers, Target and Lowe's.

Investors were also waiting for the release of the minutes of the US Federal Reserve's July 30-31 general policy meeting, which could provide a snapshot of the central bank's decision last month to cut rates. interest for the first time in more than ten years and provide clues about its future. .

How are the main landmarks?

The Dow Jones Industrial Average

DJIA, + 1.11%

increased by 222 points, or 0.9%, to 26,184, the S & P 500 Index

SPX, + 0.91%

climbed 23 points, or 0.8%, to 2,924, while the Nasdaq Composite Index

COMP + 1.03%

climbed 77 points, or 1%, to 8,026.

Tuesday, the Dow index lost 173.35 points, or 0.7%, to 25,962.44, the S & P 500 index lost 23.14 points, or 0.8% to 2,900.51, while the Nasdaq Composite Index yielded 54.25 points, or 0.7%, to 7,948.56.

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What motivates the market?

Retail Giants' Results Boosted Investor Sentiment Wednesday After Target CorpActions of.

TGT + 19.36%

set a record after retailer's release of second-quarter financial results and sales rebates exceeded expectations. Similarly DIY retailerLowe's Cos.

LOW, + 9.68%

Net income for the second quarter reached $ 1.68 billion, or $ 2.14 per share, versus $ 1.52 billion, or $ 1.86 per share, with sales up 0.5% to $ 20.99 billion.

The results of the likes of Target and Lowe's and Home Depot Inc.

HIGH DEFINITION, + 1.45%

Tuesday, helped to calm, at least temporarily, the concern that the national economy, shaken by a China-United States. shock of trade policy, may soon experience a recession.

The minutes of the July meeting of the July Fed meeting, due out at 2 pm, will be a focus for investors later in the day. Eastern time is Wednesday.

Minutes and the Fed's annual Jackson Hole, Wyo. Symposium, scheduled to begin on Thursday, could bring clarity to a market that seems convinced that the central bank's rate-setting committee is inclined to further reduce its interest rates this year. as early as next month. Wall Street is considering a near-certain rate cut on September 18, following the work of the Federal Open Market Committee's Political Committee, based on the CME Group's federal funds futures contracts.

Investors will follow to determine how the other members of the FOMC committee voted and what is the spirit of the two dissident voters at the last rally.

"Today's update will give us an overview of the rationale for the exchange rate reduction by the central bank last month. Things have changed since the Fed's July meeting. The update may therefore not provide much information, "writes market analyst David Madden of CMC Markets UK in a Wednesday note.

President Donald Trump reiterated his criticisms of the Fed on Tuesday afternoon, declaring at a meeting with the Romanian president: "If the Fed did its job, we would have a tremendous growth spurt. . " On Monday, Trump said the central bank should consider steeper cuts in key interest rates, about one percentage point, he said on Tuesday.

The president also said Tuesday that he was planning to cut taxes, including payroll taxes, following a report released Monday by the Washington Post, according to which the administration was considering temporarily reducing payroll taxes to face the threat of an economic downturn before 2020. elections. The White House had previously said that cuts in payroll taxes were not being considered, and Trump has set no deadline to date. "Payroll taxes are something I thought about. Many people would like to see that, "he said.

In terms of economic data, sales of existing homes in the United States rose 2.5%, reaching an annual rate of 5.42 million in July, the National Association of Realtors said on Wednesday. the median forecast of 5.40 million, according to a survey conducted by MarketWatch from economists.

Abroad, investors were focused on political developments in Italy after the emergence of a potential center-left coalition government that seemed to have reduced the chances of an early election more the resignation of Prime Minister Giuseppe Conte Tuesday. The yield of Italian public debt at 10 years

TMBMKIT-10Y, -0.70%

down 4 basis points to 1.318%

What stocks are under discussion?

Actions of Target

TGT + 19.36%

rose 18.6% on Wednesday after the release of the quarterly results, trading around $ 101.31, a level higher than its previous record of $ 89.26 and its highest record of $ 90.39 intraday.

Lowe's Cos's

LOW, + 9.68%

the stock jumped 11.8% on Wednesday.

Shares of Analog Devices Inc.

ADI -0.67%

fell 1.2% after the semiconductor company reported third-quarter earnings and revenue higher than expected, but with a mixed outlook for the fourth quarter.

How are other markets traded?

The yield on the 10-year US Treasury Note rose 2 basis points to 1.576%.

Asian equities traded mixed overnight, China's CSI 300

000300, -0.16%

down 0.2%, Hong Kong's Hang Seng Index

HSI, + 0.15%

0.2% and the Nikkei 225 from Japan

NIK -0.28%

paid 0.3%.

In Europe, equities traded higher with the Stoxx Europe 600

SXXP, + 1.21%

climb about 1.1%. The FTSE MIB index of Italy

I945, + 1.77%

was up 1.9% on Wednesday.

In commodity markets, the price of crude oil

CLV19, + 0.02%

was up 0.9% to 56.67 dollars a barrel, while gold prices

GCZ19, -0.02%

traded 0.3% lower. The US dollar

DXY, -0.02%,

meanwhile, was stable compared to its major trading partners.

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