Wall Street, global markets show mixed reactions amid economic data, corporate earnings

(MENAFN) On Wall Street, major indexes showed a mixed performance yesterday as investors reviewed economic data. The S&P 500 and Nasdaq Composite saw slight increases of 0.2 percent, while the Dow Jones Industrial Average fell by 52 points, or 0.1 percent. Target's shares surged over 15 percent following a strong fiscal second-quarter earnings report that exceeded Wall Street expectations. The retailer reported its first sales increase in over a year, driven by effective price reductions, and raised its full-year earnings forecast to between USD9 and USD9.70 per share. In contrast, Macy’s experienced a decline of more than 12 percent due to a revised lower sales outlook for the year. Market participants are anticipating a 100 percent probability of a Federal Reserve rate cut next month, but opinions differ on the magnitude of the reduction.

In Europe, stock markets remained largely unchanged as investors awaited more economic data to gauge the direction of U.S. interest rates. The pan-European STOXX 600 index held steady at 512.74 points, following the end of a five-day winning streak. European stock exchanges opened flat but saw slight gains, with the STOXX 600 up 0.90 percent, the German DAX up 0.32 percent, the British FTSE up 0.04 percent, and the French CAC up 0.30 percent. The basic resources sector saw a 1.2 percent rise, bolstered by a five-week high in Shanghai aluminum futures due to tight raw material supplies. Stock movements included a 3.8 percent increase for Foust Alpine after an upgrade by Morgan Stanley, while Alcon and Sonova Holdings fell by 2.2 percent and 3.2 percent, respectively, following disappointing earnings and a downgrade.

In Japan, the Nikkei index declined as a stronger yen negatively impacted local stocks. The yen appreciated to around 145 against the dollar, up from 147.34 the previous day, although this strengthened currency led to a 0.3 percent drop in the Nikkei to 37,951.8 points and a 0.2 percent decrease in the broader Topix index to 2,664.86. The yen’s rise reduces the value of overseas earnings for exporters, contributing to declines in major stocks like Tokyo Electron, Advantest, and Shin-Etsu Chemical. However, Seven & I Holdings Inc. saw a 5.8 percent rise due to ongoing speculation about a takeover by Canada’s Alimentation Couture Inc. Meanwhile, Shiseido Cosmetics Inc. experienced a 6 percent drop, marking it as the index’s largest percentage decliner, and Uniqlo owner Fast Retailing Inc. fell by 0.5 percent. 

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