Markets fall with Nasdaq leading the decline

Dow dropped 154, decliners over advancers 2-1 & NAZ lost 194.  The MLP index was off 1+ to the 295s & the REIT index fell 2+ to the 422s.  Junk bond funds were mixed & Treasuries had a litle selling bringing slightly higher yields (more below).  Oil crawled higher in the 69s & gold rebounded another 20 to 2651.

Dow Jones Industrials

Target (TGT), a Dividend Aristocrat, shares tumbled after the retailer severely missed quarterly earnings estimates & cut its full-year profit guidance.  The retailer's stock fell 19% after it said it's taking a more cautious stance for the most critical qtr in the retail industry after seeing weakness in certain discretionary categories despite slashing prices on 2000 items this holiday season to drive traffic.  CEO Brian Cornell said the company "encountered some unique challenges and cost pressures" that impacted its bottom-line performance over the last 3-month period.  Among its challenges, Cornell said there was "continued softness" in certain discretionary categories "as consumers continue to spend cautiously."  The big-box retailer is now expecting store sales to be "approximately flat" during the 4th qtr.  It is also projecting that its full-year adjusted EPS will be $8.30 - $8.90.  It's an about-face from Aug when the company raised its full-year adjusted EPS to $9.00 - $9.70.  Over the summer, the company benefited from price cuts it made, with Cornell saying there was an "acceleration" in unit & $ sales trends during the 3-month period ending Jun 30.  Its adjusted EPS for the 3rd qtr was $1.85, down 20% from the estimate of $2.30.  Revenue notched $25.7B, missing expectations of about $25.9zB. "It's disappointing that a deceleration in discretionary demand, combined with multiple cost pressures, have caused us to take down our guidance after raising it last quarter," COO Michael Fiddelke said.  The sock sank 33 (21%) for the worst day in years.

Target shares plunge after lackluster sales ahead of holiday season

TJX (TJX) touted a “strong start” to the holiday shopping season, but its shares slid after the fast-growing retailer offered guidance that appeared to underwhelm expectations during its fiscal 3rd qtr, but it's expecting EPS for its holiday qtr to $1.12 - $1.14, behind expectations of $1.18.  Net income for the 3-month period that ended Nov 2 was $1.3B, or $1.14 per share, compared with $1.19B, $1.03 per share, a year earlier.  Sales rose to $14.1B, up about 6% from $13.8B a year earlier.  “Across the Company, customer transactions drove our comp sales increases, which tells us that our values and treasure hunt shopping experience are appealing to a wide range of customers,” CEO Ernie Herrman said.  “The fourth quarter is off to a strong start, and we are excited about our opportunities for the holiday selling season. In stores and online, we are offering consumers an ever-changing and inspiring shopping destination for gifts at excellent values, and feel confident that there will be something for everyone when they shop us.”  For its holiday qtr, TJX is expecting comparable sales to grow   2-3%, largely in line with the 3% uptick that had been expected.  TJX said changes to its pretax profit margin & earnings guidance for its holiday qtr are “due to the expected reversal of the third quarter benefit from the timing of certain expenses.”  TJX is standing by its comparable sales guidance of 3% growth for the full year, just shy of the 3.2% growth that had expected.  It raised its pretax profit margin outlook from 11.2% to 11.3%, which matching expectations, along with its EPS guidance.  It's now expecting full-year earnings to be $4.15 - $4.17, up from $4.09 - $4.13.  At the high end, its guidance is in line with the $4.17 that was expected.  The stock fell 77¢.

TJ Maxx parent hikes guidance as it touts ‘strong start     to holiday shopping

Treasury yields were higher as investors considered the geopolitical situation & assessed the latest economic data.  The yield on the 10-year Treasury was up by nearly 5 basis points at 4.426% & the 2-year Treasury  yield was last trading at 4.297% after rising by more than 2 basis points.  Yields & prices move in opposite directions & 1 basis point equals 0.01%.  Investors considered the latest developments in the Russia-Ukraine war, with tensions between the US & Russia heating up over the conflict in recent days.  The US closed its embassy in Ukraine’s capital Kyiv, warning of a “potential significant air attack.”  That comes after Russian Pres Vladimir Putin updated the country's nuclear doctrine, lowering the threshold for a nuclear strike, after Ukraine for the first time used US-made long-range ballistic missiles to attack Russian territory.  Elsewhere, investors weighed the latest economic data, with new housing starts falling short of expectations in Oct & building permits slipping month over month.  More insights into the housing sector will come tomorrow in form of existing home sales data.

Treasury yields rise as investors weigh geopolitical tensions, economic data

Stocks fell ahead of critical tech stocks' earnings that could set the direction of markets for days to come.  The crucial litmus test for the artificial intelligence trade is Nvidia's (NVDA), currently slightly lower.  In the meantime threats from Russia are getting a lot of attention.