By Luzi Ann Santos | Moomoo News
$Target (TGT.US)$ and $VF Corp (VFC.US)$ led a rally in retail stocks Wednesday amid continued resilience among US consumers, fueling optimism that the economy could avoid a recession despite historic increases in borrowing costs.
Wholesale prices fell the most since April 2020, adding to signs of a soft landing. Retail sales slipped 0.1% in October, less than the 0.2% expected on Wall Street, CNBC reported.
Shares of Target climbed about 17%, making the big-box retailer the biggest performer in the S&P 500. The stock soared after the company reported better-than-expected earnings, helped declining costs including freight and digital fulfillment. The company also had lower markdowns, signaling consumers are still buying even with less discounts offered by the retailer.
VF extended this week’s surge after JPMorgan upgraded the stock to neutral, from underweight. The bank also raised its price target for the stock to $19, from $15, MT Newswires reported. The stock advanced 12%. Online retailer ETSY also gained 6.8%, while Kohl’s Corp. rallied 8.5%.
Home Depot said that the “worst of the inflationary environment is behind us,” CNBC reported Tuesday. That helped fuel the positive sentiment in the stock market.