Target Dips After Trimming Forecast; Lowe's Rallies; Semrush Soars
On this episode of Stock Movers:- Shares of Target Corporation (TGT) dipped in premarket trading after the company trimmed its profit forecast for the year, signaling that its turnaround push is going to take more time as the big-box retailer deals with markdowns and soft demand in key merchandise areas. The company now expects earnings per share, excluding some items, of $7 to $8 this year, cutting the high end of its previous forecast. By that same measure, third-quarter results surpassed the average of analyst estimates, but the key retail metric of comparable sales contracted more than expected. - Shares of Lowe's Co. (LOW) rallied after the company reported profit that topped expectations on a pickup in online sales and growth in demand from professional contractors. Adjusted earnings per share were $3.06 in the third quarter, the company said in a statement Wednesday, compared with the $3.00 estimate of analysts surveyed by Bloomberg. Lowe’s reported positive same-store sales growth for a second consecutive quarter on strength in its digital channel and in home services. It saw “continued growth” in sales to professional contractors, a market it has sought to expand in recently.- Shares of Semrush Holdings (SEMR) soared in the early session after news Adobe agreed to buy the marketing software company for $1.9 billion, marking its first takeover announcement since the failed $20 billion acquisition of Figma Inc. in 2022. The all-cash deal will value Semrush at $12 per share and is expected to close in the first half of 2026, Adobe said in a statement Wednesday. Semrush is a platform that allows businesses to analyze and optimize their online marketing, including how their company appears in AI search results. Acquiring the company will help Adobe offer “a comprehensive solution that gives marketers a holistic understanding of how their brands appear across owned channels, LLMs, traditional search and the wider web,” the company said in the statement.See omnystudio.com/listener for privacy information.
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WH Smith Up, Vivendi Slumps, Kering Drops
On this episode of Stock Movers:- WH Smith Chief Executive Officer Carl Cowling resigned, as an accounting error forced the British retailer to cut its profit outlook in North America for a second time.- Vivendi shares slumped on Wednesday after Le Monde reported that billionaire Vincent Bolloré’s eponymous holding could escape having to pay anything to compensate minority shareholders over the recent split of the group.- Kering dropped the most in nearly two weeks, after CEO Luca de Meo said the company must reduce its reliance on its flagship Gucci brand and further scale back its store network to return to growth, according to a Reuters report.See omnystudio.com/listener for privacy information.
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Ocado Slides, WH Smith Dips, Jet2 Jumps
On this episode of Stock Movers:- Ocado shares slump after its biggest customer, US grocer Kroger Co., said its automated warehouse network is falling short of financial expectations and announced the closure of three sites.- WH Smith shares fall only modestly in early trading as analysts find some positives amid the publication of an independent review by Deloitte that led to the resignation of CEO Carl Cowling.- Jet2 shares rise the most since April, after the budget airline reassured investors concerned about recent weakness in prices by reiterating it should meet underlying profit expectations this year.See omnystudio.com/listener for privacy information.
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Microsoft, Amazon, Home Depot and Honeywell Drop
On this episode of stock movers: Microsoft (MSFT) and Amazon (AMZN) fall after Rothschild & Co Redburn's Alexander Haissl downgraded Microsoft Corp. and Amazon.com Inc. to neutral from buy, citing the industry's "trust us – Gen-AI is just like early cloud 1.0" narrative as "increasingly misplaced" Home Depot (HD) sinks after the company cut its full-year earnings guidance, warning that some unsteady consumers are hitting the pause button on big-ticket home purchases. Honeywell (HON) drops after BofA Global Research cut the recommendation on the industrial giant to underperform from buy, becoming the lone sell-equivalent rating in Bloomberg data. BofA expects shares to lag as elements of its spinoff strategy disappoint investors and the company doesn’t deliver earnings growth next year. See omnystudio.com/listener for privacy information.
Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Katie Greifeld, Tim Stenovec and Carol Massar. On this episode of Stock Movers: - Medtronic (MDT) gained 4.6%, the biggest gainer in the S&P today. The rise came after the medical device maker lifted the bottom end of its range for adjusted profit forecast for the year. The company also boosted its organic revenue outlook following better-than-expected results in the second quarter. - Merck (MRK) shares rose to their highest level since March after the drugmaker said a mid-stage trial of its drug for a rare form of high blood pressure met its main goal. Analysts see the trial win as a potential for an expanded market for the drug, Winrevair. - Nvidia closed 2.8% lower. Tech weakness is persisting ahead of Nvidia's earnings report. The company, along with Microsoft, is committing to invest up to a combined $15 billion in Anthropic in a move that ties the AI developer closer to two of the biggest backers for its rival OpenAI. See omnystudio.com/listener for privacy information.
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