What happened on the stock market today?

Key market indicators were boosted by the announcement of good results by distribution companies on Wednesday, indicating that the US consumer remained healthy and helped to ease fears of recession. the Dow Jones Industrial Average (DJINDICES: ^ DJI) and the S & P 500 (SNPINDEX: ^ GSPC) both gained almost 1%. All sectors advanced, with basic consumption and technology leading the way.

Stock Market Today

Data source: Yahoo! Finance.

With respect to individual stocks, solid retail profits point to Target (NYSE: TGT) and Lowe & # 39; s (NYSE: LOW) raised their shares higher.

Source of the image: Getty Images.

Innovation and remodeling of power

TARGET surpassed Wall Street's earnings expectations for the second quarter, continuing its recent run as the retail industry's big winner, and its shares jumped 20.4%, peaking at a record low. previous. Revenues rose 3.6% to $ 18.42 billion and earnings per share jumped 22% to $ 1.82. Analysts were expecting the company to earn $ 1.62 per share for a $ 18.34 billion business figure.

Same-store sales increased 3.4%, primarily due to a 2.4% increase in transactions. Physical stores accounted for 1.5% of overall comparable sales growth, while Target's digital channel contributed 1.8%. Comparable digital sales increased 34% and digital sales accounted for 7.3% of total sales, compared to 5.6% in the second quarter of last year. Growth was strongest in essentials, beauty and clothing, with growth of more than 5%.

Overall margins widened, with gross margin increasing by one percentage point from the first quarter and 30 basis points from the second quarter of last year, the first increase from one year to the other of the gross margin in almost three years. The operating margin increased by 80 basis points, from one year to the next and sequentially, exceeding the expectations of the company.

Target is pursuing all of its objectives as its investments in same-day delivery options, store renovations and private labels continue to pay off.

Lowe's better earnings than expected

The story continues

Home improvement chain Lowe's has announced a rise in its comparable sales and sharp increases in its EPS, fueled by cost reduction and share buyback, and the stock jumped 10.4%. Net sales in the second quarter rose 0.5% to $ 21 billion, slightly exceeding expectations of $ 20.94 billion. Adjusted EPS increased 3.9% to $ 2.14, which was far better than the 12% drop expected by analysts. Earnings per share were boosted by a 4.1% decline in the number of shares outstanding, with Lowe's buying back its stock aggressively.

Comparable sales increased 2.3%, with a gain of 3.2% in the United States. Lowe's told the teleconference that sales in the US had gradually improved throughout the quarter, increasing 0.7% in May, 4.2% in June and 4.7% in July. The company experienced strong growth in paint sales and sales to professionals, offsetting weather problems and deflation of lumber prices. Margins improved compared to last quarter's disappointing results.

As for the future, Lowe's has maintained its guidance for the entire year despite the unfavorable wind associated with new tariffs on goods from China. The company expects sales to increase by 2% this year and adjusted EPS to be between $ 5.45 and $ 5.65.

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Jim Crumly owns Target shares. The Motley Fool recommends Lowe's. Motley Fool has a disclosure policy.

This article was originally published on Fool.com