How is this possible? The government just told us that retail sales jumped the most in years?
Target is out with its earnings despite beating bottom line, it missed top-line and took an ax to Q2 guidance...
- *TARGET 1Q ADJ. EPS $1.29, EST. $1.19 (Good)
- *TARGET 1Q REV. $16.2B, EST. $16.3B (Bad)
- *TARGET SEES 2Q ADJ. EPS $1.00-$1.20, EST. $1.36 (Ugly)
One of the stated reasons for the Shanghai Composite's 1.3% drop (and it would have been worse had the PPT not launched its infamous last minute buying blitz) was also the most amusing one: the stock market bubble is in danger of popping even more as a result of a housing bubble that is now raging at a pace not seen since the last Chinese housing bubble, and thus threatens to soak up even more cash from China's chronic gamblers-cum-speculators.
Just hours after Goldman unexpectedly weighed in bearishly on stocks, tactically downgrading global equities to Neutral over the next 12 months "on growth and valuation concerns" adding that "until we see sustained earnings growth, equities do not look attractive, especially on a risk-adjusted basis" in what some see as a potential upward inflection point in the market now that the biggest taxpayer backed hedge fund is buying what its clients have to sell, Goldman decided to unveil another surprise this time upgrading one of the biggest momentum/growth stocks, Tesla, to a buy with a $250 pr
After two violently volatile days in which the market soared (Monday) then promptly retraced all gains (Tuesday), the overnight session has been relatively calm with futures and oil both unchanged even as the BBG dollar index rose to the highest level since April 4. This took place despite a substantial amount of macro data from both Japan, where the GDP came well above the expected 0.3%, instead printing 1.7% annualized, which pushed stocks lower as it meant the probability of more BOJ interventions or a delay of the sales tax hike both dropped.