Advertisement
Singapore markets open in 6 hours 32 minutes

  • Straits Times Index

    3,332.80
    -10.55 (-0.32%)
     

  • S&P 500

    5,460.48
    -22.39 (-0.41%)
     

  • Dow

    39,118.86
    -45.24 (-0.12%)
     

  • Nasdaq

    17,732.60
    -126.10 (-0.71%)
     

  • Bitcoin USD

    61,638.14
    +722.69 (+1.19%)
     

  • CMC Crypto 200

    1,279.94
    -3.89 (-0.30%)
     

  • FTSE 100

    8,164.12
    -15.56 (-0.19%)
     

  • Gold

    2,336.90
    +0.30 (+0.01%)
     

  • Crude Oil

    81.46
    -0.28 (-0.34%)
     

  • 10-Yr Bond

    4.3430
    +0.0550 (+1.28%)
     

  • Nikkei

    39,583.08
    +241.58 (+0.61%)
     

  • Hang Seng

    17,718.61
    +2.11 (+0.01%)
     

  • FTSE Bursa Malaysia

    1,590.09
    +5.15 (+0.32%)
     

  • Jakarta Composite Index

    7,063.58
    +95.63 (+1.37%)
     

  • PSE Index

    6,411.91
    +21.33 (+0.33%)
     

Target CEO: We're seeing 'healthy' spending despite 'unusual' economic times

Brian Sozzi
·Executive Editor
Updated ·2-min read

Target CEO Brian Cornell says the retailer's data predicts shoppers will spend solidly during the all-important holiday season despite "unusual" economic times in the U.S.

"We continue to see a healthy guest shopping in our stores and shopping online," Cornell said at the Yahoo Finance All Markets Summit on Monday. "We'll see how they react throughout the holiday season, but when we talk to them they continue to say they want to celebrate the holidays."

Shares of the discount retailer rose 3% after Cornell's upbeat commentary. Despite Cornell's optimism, the U.S. consumer continues to be in a precarious spot headed into 2023.

First, the Dow Jones Industrial Average (^DJI), S&P 500 (^GSPC), and Nasdaq Composite (^IXIC) are still mired in double-digit percentage declines for the year as the Federal Reserve hikes interest rates to beat back inflation. The bear market — coupled with pressured home prices as a result of the Fed's actions — is weighing on household net worth and spending plans.

Los Angeles, CA - September 07: Shamita Jayakumar shops at Target as she does about every other week at the Jefferson Blvd location on Wednesday, Sept. 7, 2022 in Los Angeles, The 32-year-old Santa Monica tech worker is among a generation of women who views their Target runs as a self-care ritual of sorts the type of dedicated alone time you might get on a solo hike or while getting a massage, but under the guise of errands so it's easier to carve out. CA. (Dania Maxwell / Los Angeles Times via Getty Images)
Los Angeles, CA - September 07: Shamita Jayakumar shops at Target as she does about every other week at the Jefferson Blvd location on Wednesday, Sept. 7, 2022 in Los Angeles,(Dania Maxwell / Los Angeles Times via Getty Images) (Dania Maxwell via Getty Images)

Not helping matters is consumer price inflation hovering near 40-year highs, causing shoppers to trade down. Cornell acknowledged sky-high inflation but pointed out that the 3.5% unemployment rate remains relatively low.

ADVERTISEMENT

"On one side, we have got inflation that is at a 40-year high, but unemployment is incredibly low — and I think those two things are balancing out right now," Cornell said.

Still, the labor market is showing its first signs of cracks.

Reports of Intel laying off thousands of workers amid a slowdown in PC sales surfaced a week ago. Beyond Meat is cutting 19% of its workforce. Facebook parent Meta is also reportedly culling workers, and other tech companies began cuts or hiring freezes earlier this year.

U.S.-based employers announced 29,989 job cuts in September, a 46.4% increase from August, according to data from outplacement firm Challenger, Gray & Christmas. The figure is a stunning 67.6% higher from the same month last year.

September marked the fifth time this year that job cuts were higher in 2022 than in the same month a year ago, the data showed.

Cornell says he is closely monitoring actions the Fed takes to rein in inflation.

"We have got to watch it carefully. We have got to be agile, we have got to prepare for any environment," Cornell added.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for Apple or Android

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube