{"id":61736,"date":"2022-06-07T08:57:07","date_gmt":"2022-06-07T12:57:07","guid":{"rendered":"https:\/\/www.t3live.com\/blog\/?p=61736"},"modified":"2022-06-07T08:57:07","modified_gmt":"2022-06-07T12:57:07","slug":"coffee-with-greta-stocks-slide-after-targets-profit-warning","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/06\/07\/coffee-with-greta-stocks-slide-after-targets-profit-warning\/","title":{"rendered":"Coffee With Greta: Stocks Slide After Target’s Profit Warning"},"content":{"rendered":"

Editor's Note:<\/strong> Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here<\/span><\/a><\/strong>.<\/p>\n

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DJIA Futures: <\/b>-252 (-0.8%)<\/span><\/p>\n

SPX Futures: <\/b>-37 (-0.9%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-156 (-1.2%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are falling after a profit warning from Target.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Target Slides On Profit Warning<\/strong><\/h2>\n

Target <\/b>(TGT) shares are sliding 7.2% ahead of the open after slashing its fiscal Q2 profit margin expectations.\u00a0<\/span><\/p>\n

The retailer said it will be lower prices and cancel orders in an effort to reduce excess inventory.<\/span><\/p>\n

Target said it had over $15 billion of inventory at the end of fiscal Q1, up 43% year-over-year.<\/span><\/p>\n

CEO Brian Cornell told <\/span>CNBC<\/span><\/a>, \u201cWe thought it was prudent for us to be decisive, act quickly, get out in front of this, address and optimize our inventory in the second quarter \u2014 take those actions necessary to remove the excess inventory and set ourselves up to continue to be guest relevant with our assortment.\u201d<\/span><\/p>\n

Target now expects its operating margin rate this quarter to be around 2%.<\/span><\/p>\n

The retailer previously forecast its margin rate would be relatively unchanged from Q1 at 5.3%.\u00a0<\/span><\/p>\n

The company said it expects profit margins to rise to around 6% in the second half of the year.<\/span><\/p>\n

Kohl\u2019s Surges On Takeover Talks<\/strong><\/h2>\n

Kohl\u2019s <\/b>(KSS) shares are surging 11.9% in premarket trade after the company announced it has entered exclusive takeover talks with <\/span>Franchise Group <\/b>(FRG).<\/span><\/p>\n

Franchise Group has offered to buy the department store chain at $60 per share, valuing the company at $8 billion.\u00a0<\/span><\/p>\n

The companies said late Monday they have entered a three-week exclusivity period to discuss that bid.<\/span><\/p>\n

The deal is subject to approval by both company boards.\u00a0<\/span><\/p>\n

Trade Deficit Tumbles From Record<\/strong><\/h2>\n

The U.S. trade deficit fell sharply in April.<\/span><\/p>\n

The Commerce Department reported that gap shrank 19% to $87.1 billion.\u00a0<\/span><\/p>\n

That was better than economists\u2019 expectations for $89.4 billion.<\/span><\/p>\n

The drop came as exports rebounded and imports fell.\u00a0<\/span><\/p>\n

Exports rose 3.5% to $252.6 billion while imports fell 3.4% to $339.7 billion.<\/span><\/p>\n

Oil Prices Stabilize<\/strong><\/h2>\n

Oil prices are flat today as the market weighs supply concerns against increased demand expectations from China.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are down 0.3% at $118 bbl while Brent crude futures are slipping 0.4% to $119 bbl.<\/span><\/p>\n

Analysts expect the drop in prices to be short-lived as Beijing and Shanghai, China return to normal after two months of Covid lockdowns.\u00a0<\/span><\/p>\n

The market is also doubtful that OPEC\u2019s agreement to increase production faster will actually alleviate tight supply.<\/span><\/p>\n

U.S. Gas Prices Surge To Fresh Record<\/strong><\/h2>\n

The national average for a gallon of regular gas jumped sharply again overnight.<\/span><\/p>\n

AAA<\/span><\/a> shows that price rose to $4.919\/gal today.\u00a0<\/span><\/p>\n

That\u2019s up more than 5 cents from just yesterday and nearly 30 cents from a week ago.\u00a0<\/span><\/p>\n

The national average is on track to hit $5\/gal for the first time ever soon.\u00a0<\/span><\/p>\n

13 states already have an average price over $5: Alaska, Arizona, California, Hawaii, Indiana, Illinois, Maine, Massachusetts, Michigan, Nevada, New Jersey, Oregon, and Washington.\u00a0<\/span><\/p>\n

Peloton\u2019s CFO Steps Down<\/strong><\/h2>\n

Peloton <\/b>(PTON) shares are flat in premarket trade after a new SEC <\/span>filing<\/span><\/a> revealed the company\u2019s CFO is leaving.\u00a0<\/span><\/p>\n

Jill Woodworth will be replaced by current Amazon Web Services executive Liz Coddington, effect next week.\u00a0<\/span><\/p>\n

CEO Barry McCarthy said, \u201cHaving worked at some of the strongest and most recognizable technology brands, [Liz] not only brings the expertise needed to run our finance organization, but she has a critical understanding of what it takes to drive growth and operational excellence.\u201d<\/span><\/p>\n

Apple Unveils New Products\u00a0<\/strong><\/h2>\n

Apple <\/b>(AAPL) shares are down 1.4% ahead of the open after the tech giant hosted its annual Worldwide Developers Conference on Monday.\u00a0<\/span><\/p>\n

Here\u2019s everything Apple unveiled at the event:<\/span><\/p>\n