Good Evening! On Wednesday, the decline in stock prices intensified towards the end of the trading session following the release of minutes from the Federal Reserve, which indicated that a majority of officials still perceive potential upward risks to inflation.
The market decline continued with all three indexes finishing the day again in the red with the Dow Jones decreasing by 0.52%, the Nasdaq Composite sliding by 1.15%, and the S&P 500 declining by 0.76%.
THEFT IS STABILIZING
Target (TGT) released its second-quarter earnings report and significantly reduced its projected annual profit forecast. The company cautioned that the prevailing economic downturn, increasing interest rates, and the impending return of student loan repayments could impact its overall financial performance.
- Revenue: $24.8 Billion vs. $24.96 Billion Expected
- Gross profit margin: 27% vs. 25.63% Expected
- Earnings Per Share: $1.80 vs. $1.40 Expected
Update on Theft… Back in May, Target issued a warning regarding the negative impact of theft and organized retail crime on its profitability. The company projected a potential reduction of over $500 million in addition to the $650 million in losses experienced during the fiscal year of 2022.
However! Target reported that the second quarter saw a decrease in margins by around 1% due to losses incurred from theft. The company anticipates that this trend will persist in the following quarter, but will gradually ease as it progresses towards the final two months of the year.
HEADS UP IF YOU ARE LOOKING FOR A NEW CAR
According to recent crash statistics released by the Insurance Institute for Highway Safety (IIHS), it was found that among six midsize sedans, only the Honda Accord achieved the highest overall grade of “good” in terms of ensuring the safety of rear-seat passengers.
What about the other 5 sedans… According to the IIHS, the Subaru Outback was determined to be the second safest vehicle, receiving an “acceptable” grade. Following the Subaru Outback, the Nissan Altima and Toyota Camry were ranked as “marginal” in terms of safety. The Hyundai Sonata, Kia K5, and Volkswagen Jetta received a rating of “poor” in the evaluation.
However, if midsize sedans are your cup of tea… Both the US and Global mid-size sedan market have experienced a decline in size, primarily due to consumer preferences shifting towards crossover vehicles such as the Outback and other compact SUVs. In the previous year, there was an impressive increase of 2.3% in global sales of SUVs, reaching a record-high 32.8 million units sold. This surge in sales resulted in SUVs capturing a significant market share of 41.3% among all cars.
However, watch out… Safety advocates also caution that the increasing number of SUVs and crossovers, characterized by their larger size and greater weight, pose heightened risks to pedestrians and cyclists. A recent publication in the Journal of Safety Research revealed that pedestrian and bicycle incidents involving SUVs and trucks made up 26.1% of reported collisions. However, these specific collisions were responsible for a significantly higher fatality rate, amounting to 44.1% of all reported fatalities.