Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News
Costco shares slide after earnings miss
News
Thor shares decline despite upbeat earnings
News
Is Walmart recession-proof?
News
EUR/USD slides despite strong Germany data
News
Crude oil settles lower after surging past $82
News
Will rates ruin the S&P 500?
Trends & Analysis
News
Costco shares slide after earnings miss
News
Thor shares decline despite upbeat earnings
News
Is Walmart recession-proof?
News
EUR/USD slides despite strong Germany data
News
Crude oil settles lower after surging past $82
News
Will rates ruin the S&P 500?

Account
New to ADSS? Open an
account now to get started.
Open an account Login

News

Target Aims for Long-term Growth amid Downbeat Q4

The news shaping the markets today

The IEA (International Energy Agency) warned of a global energy crisis stemming from Russia’s invasion of Ukraine, which led to WTI crude oil prices breaching the $108 per barrel mark this morning.


South Korea’s manufacturing PMI climbed to an eight-month high of 52.8 in February, from 52.8 in the previous month. The country’s factory activity expanding for the 17th straight month lent support to the KRW/USD forex pair.


Australia’s economy grew 3.4% during the fourth quarter, following a 1.9% contraction in the previous quarter. This being the strongest pace of GDP growth since Q3 2020 sent the AUD/USD pair higher in forex trading this morning.


New Zealand’s merchandise terms of trade fell 1.0% during the three months to December 2021, versus 0.4% growth in the prior period. Despite this, the NZD/USD forex pair remained elevated.


Mexico’s manufacturing PMI climbed to 48 in February, from 46.1 a month ago. The recent reading signalled the 24th straight month of contraction in factory activity and sent the MXN/USD pair lower in forex trading this morning.

 

What’s happening: Shares of Target Corporation jumped on Tuesday, despite the company reporting weaker-than-expected revenues for its fourth quarter.

What happened: Although Target’s revenues disappointed investors, the company’s earnings were higher, and management issued a strong full-year forecast.

Target also announced plans to make a significant investment in a bid to drive long-term growth.

How were the results: The retailer reported growth in revenues for the fourth quarter but missed market views.

  • Sales grew 9.4% year-over-year to $30.99 billion but was short of the Street expectations of $31.41 billion.
  • Adjusted earnings came in at $3.19 per share, surpassing the consensus estimates of $2.86 per share.

Why it matters: Target’s comparable store sales climbed 8.9% in the fourth quarter, versus the consensus estimate of 10.2%. The company’s comp store sales had jumped 20.5% in the year-ago quarter, amid pandemic restrictions.

Target’s gross margins shrank 110 basis points year-over-year to 25.7% due to higher supply chain costs. However, the retailer was able to expand its operating margins by 30 basis points to 6.8% in the fourth quarter.

Target is the latest in the list of firms raising pay and benefits of workers. The company announced to increase minimum hourly wages from $15 to $24 and add more healthcare benefits.

Management announced plans to invest up to $5 billion in “physical stores, digital experiences, fulfilment capabilities and supply chain capacity.”

The company guided to fiscal 2022 revenue growth in the range of low- to mid-single digits, versus analyst expectations of 2.4%. Management also projected high-single-digit growth in adjusted earnings per share for the year.

How shares responded: Target’s shares jumped 9.8% to close at $219.43 on Tuesday, following the release of quarterly results. The stock had lost around 5% year to date.

What to watch: Investors will continue monitoring Target’s investment plan and footfall at the company’s physical stores with the elimination of pandemic-related restrictions.

The markets today

Gold will be in focus today after recording gains on Tuesday

 

Context: Gold futures jumped on Tuesday to record their strongest settlement in 13 months.

Details: Geopolitical concerns continued to impact global markets, with Russian troops shelling Ukraine’s second-largest city Kharkiv. Russia’s forces are expected to strike intelligence and communication facilities in central Kyiv, with Monday’s ceasefire talks ending with no clear solution.

During his first State of the Union address, US President Joe Biden expressed concern around the Ukraine-Russia situation, saying he would make President Vladimir Putin “pay a price” for the invasion. Biden also announced plans to close the country’s airspace to all Russian flights.

Sanctions by various Western countries on Russia continued to trigger volatility in global markets, increasing demand for safe-haven assets like gold. A decline in US bond yields also provided support to the yellow metal.

April gold gained $43.10, or 2.3%, to close at $1,943.80 an ounce, the highest settlement since January 2021. Gold prices had jumped 5.8% in February, the highest gains since May 2021.

May silver rose 4.8%, or $1.18, to settle at $25.541 an ounce on Tuesday, the highest level since August 2021. The white metal ended February with 8.8% gains. May copper rose 3.2% to $4.597 a pound, while April platinum climbed 1.3% to settle at $1,051.90 an ounce. June palladium closed at $2,537.80 an ounce, up 1.3%.

What to watch: Traders will keep an eye on the developments around the Russia-Ukraine conflict. The release of major economic reports will also remain in focus today.

Other Markets: US indices closed lower on Tuesday, with the Dow Jones index, S&P 500 and Nasdaq 100 down by 1.76%, 1.55% and 1.63%, respectively.

Support & resistances for today

Technical Levels News Sentiment
USD/JPY – 115.00 and 115.07 Positive
GBP/USD – 1.3311 and 1.3324 Positive
Gold – 1,935.59 and 1,940.39 Positive
Silver – 25.192 and 25.317 Positive
Copper – 4.5583 and 4.5725 Negative

 

Market snapshot

What else to watch today

Germany’s unemployment rate, UK’s Nationwide housing prices, France’s government budget value, Spain’s unemployment change, Eurozone’s consumer price index and inflation rate, Italy’s car registrations, Mexico’s foreign exchange reserves, US MBA mortgage applications, crude oil inventories, gasoline inventories, Fed Chair Powell testimony, heating oil stocks and Fed Beige Book, Bank of Canada’s interest rate decision, Russia’s unemployment rate, real wages, retail sales, gross domestic product and manufacturing confidence, India’s balance of trade, exports and imports, as well as Argentina’s tax revenue.


Site by Pink Green
© ADSS 2022


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.