Investors were prepared to ride the week out and wait for some potential good news on the inflation front, with the release of the Consumer Price Index. However, Target Corp, for the second time in 12 days inflicted pain on the entire market, with a lowering of its previous lower guidance.
As a result, the premarket retreat, which was already in motion, became more intense. However, the S&P 500 index futures found buyers ahead of last week’s low (4076 vs, 4071.50) and the bulls reasserted control.
Once the index was able to stabilize above Monday’s close (4020.50), the pace of the rally accelerated. To further emphasize a trading range theme, the index peaked a few handles below Monday’s high (4164 vs. 4168.25) and backed off in the last few minutes.
An upgrade from Evercore ISI to “Outperform” propelled Exxon Mobil to a new eight-year high and was the biggest gainer of the top components. For the session, the issue added $4.53 or 4.6 percent to close at $103.37.
That was nearly five times better than the cash index’s advance of 0.93 percent.
The only loser and therefore, the biggest loser of the top components was Amazon.com Inc. (NASDAQ: AMZN). For the session, the issue declined by $1.79 or 1.4 percent.
PreMarket Prep Stock Of The Day: Target Corp (NYSE: TGT)
“Buy the dip” off bad news as opposed to last when it shed 25%. Read more on TGT here.