Holiday optimism returns after Target, Lowe's results

Target brought back some holiday cheer to the market one day after a number of disappointing retail earnings sparked fear this year's holiday shopping season won't be a robust one.

Target, the second largest discount retailer, posted better-than-expected quarterly results on Wednesday and raised its profit outlook for the year.

The stock hit an all-time high.

The retailer has seen a lot of success from investments in the online space and in terms of multiple delivery options from same-day to pick-up.

All that is paying off and allowing Target to steal customers away from department stores and specialty retailers.

One retailer that's not getting caught up in Target's vortex is Lowe's. The second-largest home improvement retailer behind Home Depot also boosted its full-year profit forecast.

The company offered fewer discounts which helped it pocket more profit from each sale. A tweak in its product line toward more power tools brought in professional builders and handymen, which tend to spend more. Quarterly sales, however, came in just below analysts forecasts but not enough to change Lowe's sales outlook.

That was a relief after Home Depot cut its forecast for the second time this year.

Shares of Lowe's rallied to an all-time high Wednesday.