Target to take advantage of a holiday spending spree

 Target to take advantage of a holiday spending spree

Target to take advantage of a holiday spending spree.

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Yesterday’s inflation data came out higher than expected as the monthly CPI rose to 0.4% with the year’s inflation back up to 5.4% from the slight descent that we got last month coming down to 5.3%. The result is that investors shifted to a risk on approach as the dollar weakened during the course of the day.

Yesterday’s movers

Stocks to watch

Target Corporation (TGT)

As the US economy recovers with the unemployment rate on the decline and consumer spending on the rise a lot of e-commerce and retail vendors have started offering discounts in the leadup to Black Friday sooner than expected to try and stretch out holiday spending.

Bank of America has stated that e-commerce remains a top growth industry, with traditional retailers like Target and Walmart making considerable leeway in their online support efforts to drive higher online sales.

The previous quarter’s earnings and revenue beat expectations, with considerable value in the retail sector in the leadup to Back Friday and holiday season shopping sprees more potential upside should be expected with the third-quarter earnings due in the latter part of November.

Technically the retail stock is gearing up for a change in trend as we got a break of the falling trend line as momentum starts to shift, a break of $240 should be the confirmation of the continuation of the rally.

Zander van der Merwe

Zander van der Merwe is a Commerce graduate with majors in Economics from the University of Pretoria with an intense passion for the financial markets. My general focus is to look at the markets holistically combining strong Fundamental views with the incorporation of Technical analysis in the sphere of the United States stock markets, indices, commodities as well as the new kid on the block: cryptocurrencies. I incorporate this very strongly with my value add to the TD Markets team to ensure that clients are being given the transparent and in-depth view of the markets that is imperative to a career in trading. I am also a writer and market analyst at TD markets

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