Financial Markets                      11/20 15:32

   

   NEW YORK (AP) -- U.S. stocks drifted to a mixed finish on Wednesday, though 
the modest moves for indexes masked some thrashing underneath the surface. 
Target lost more than a fifth of its value after the retailer gave a dour 
forecast for the holiday shopping season.

   The S&P 500 finished the day virtually unchanged after erasing a loss of 1% 
from the morning. The Dow Jones Industrial Average eked out a gain of 139 
points, or 0.3%, and the Nasdaq composite slipped 0.1%.

   Target's 21.4% tumble followed its report showing weaker profit and revenue 
for the latest quarter than analysts expected. The retailer also gave a 
forecast for profit in the upcoming holiday season that was below analysts' 
estimates.

   Target's performance stood in stark contrast to rival Walmart, which 
reported another quarter of stellar sales Tuesday and released optimistic 
projections for the holiday season.

   Hints about how U.S. consumers are doing are under particular scrutiny, 
given that they'll need to keep spending if the U.S. economy is to continue to 
avoid a recession. Shoppers are contending with high prices across the economy 
and still-high interest rates.

   "I find the Target and Walmart earnings very interesting because we 
typically see a waterfall type effect when the economy begins to struggle, with 
shoppers trading down from stores such as Target to Walmart," said JJ Kinahan, 
CEO of IG North America. "I'm not entirely sure if the move to Walmart is 
simply a matter of shoppers finding more items they like at Walmart or if this 
is a potentially concerning economic sign."

   Besides Target, several lower-priced retailers were among the biggest losers 
in the S&P 500. Dollar General fell 4.2%, and Dollar Tree sank 2.6%.

   On the winning end of Wall Street was Williams-Sonoma, which jumped 27.5% 
after the home retailer delivered better profit and revenue for the latest 
quarter than analysts expected. The parent of Pottery Barn also said it expects 
overall sales to fall by less this fiscal year than it had earlier forecast.

   Comcast rose 1.6% after announcing the spinoff of USA, CNBC, MSNBC and other 
cable television networks into a standalone company that will have its own 
stock trading on the market. 
https://apnews.com/article/comcast-cable-spinoff-cnbc-msnbc-0d012a413e6dd863966f
8d7aa0a9624d

   All told, the S&P 500 inched up by 0.13, or less than 0.1%, to 5,917.1. The 
Dow Jones Industrial Average added 139.53 points to 43,408.47, and the Nasdaq 
composite slipped 21.32 to 18,996.14.

   The headliner of the day, week and perhaps the rest of the year for Wall 
Street is scheduled to arrive later on Wednesday. That's when superstar stock 
Nvidia will unveil its results for the latest quarter.

   The company has grown into a $3.6 trillion behemoth because of nearly 
insatiable demand for its chips used in artificial-intelligence technology. 
It's grown so fast, with its stock nearly tripling for the year through 
Tuesday, that pressure has grown for it to show it can keep leapfrogging past 
analysts' already high expectations.

   Trading in the options market suggests Nvidia's profit report was the most 
anticipated event left in 2024, more than even the Federal Reserve's upcoming 
meeting on interest rates, according to Barclays Capital.

   Outside of Nvidia, financial markets are still absorbing the impacts of 
Donald Trump's victory in the presidential election earlier this month.

   Wells Fargo Investment Institute on Wednesday raised its forecasts for where 
Treasury yields will end next year, in part because of expectations that 
Trump's policies will drive faster U.S. economic growth and inflation. 
Strategists at the institute also raised their forecast for where the S&P 500 
will end next year because of that faster growth, which should translate into 
bigger corporate profits, along with easier regulations.

   Treasury yields held relatively steady in the bond market. The 10-year yield 
edged up to 4.41% from 4.40% late Tuesday. It has been generally rising from 
less than 3.70% in September.

   In stock markets abroad, indexes moved modestly across much of Europe and 
Asia.

   The FTSE 100 in London slipped 0.2% after the Office for National Statistics 
reported the inflation rate picked up to a six-month high in October.

   Japan's Nikkei 225 slipped 0.2% after the Finance Ministry reported the 
country recorded a trade deficit in October for a fourth straight month.

   ___

   AP Writer Zimo Zhong contributed.

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