US stocks climb on Target results, Fed minutes
Wall Street stocks finished higher on Wednesday following solid earnings from big-box retailer Target and Federal Reserve meeting minutes that hinted at an upcoming interest rate cut. Target – Walmart's smaller, North American-focused rival – soared more than 11 percent after reporting higher comparable store sales in its second quarter after a string of declines. Meanwhile, futures markets continued to bet on a September interest rate cut following Fed meeting minutes in which a "vast majority" of policy makers expressed support for an interest rate cut if economic data plays out as expected. The Dow Jones ended up 0.1 percent at 40,890. The S&P 500 gained 0.4 percent to 5,620, while Nasdaq rose 0.6 percent to 17,918. The Fed minutes were "dovish and though they're dated, they suggest the debate is not whether the central bank cuts interest rate at its upcoming September meeting but rather how aggressive the initial phase of this normalization cycle should be," said a note from Oxford Economics. Interest rate cuts are expected in light of a weaker US jobs market. Labour Department figures released on Wednesday showed US employers added around 68,000 fewer jobs monthly in the 12-month period through March 2024 compared with earlier estimates. Among individual companies, Ford climbed 1.5 percent despite announcing US$1.9 billion in costs connected to shifts in its electric vehicle strategy. The automaker scuttled plans for one new EV model and pushed back the timeframe on a second vehicle in light of a slower-than-expected transition to EVs in North America. JD.com, the Chinese online retail company, fell 4.2 percent after disclosing that Walmart divested its shares in the company. Among retailers reporting Wednesday, TJ Maxx parent TJX jumped 6.1 percent while Macy's slumped 13 percent. (AFP)