Stock market ticker: U.S. retailers under attack after significant profit drop due to increased pressure
In the world of retail, Target has faced a setback, trailing behind competitors Walmart and Home Depot after a profit drop and sales miss. This news came at 13:25, sending shockwaves through the market.
Meanwhile, in the commodities sector, the most-traded September zinc contract on the Shanghai Futures Exchange saw a 4.6% jump at 08:00, reaching a two-month high of 25,935 yuan per tonne. The most-traded aluminum contract on the same exchange also rose, increasing by 3.3% at the same time. Fears of supply disruptions have been driving up zinc and aluminum prices on Chinese futures exchanges.
The robust demand for fuel, as indicated by the second consecutive weekly decline in US gasoline stocks, has reassured investors, boosting Brent and WTI prices. At 08:10, Brent crude price increased 1.1% to $93.37 per barrel, while US light crude price rose 1.2% to $87.60.
The pharmaceutical industry has also seen a significant development, with Sanofi lagging behind the Paris CAC 40 index following the failure of its breast cancer drug Amcenestrant. Analysts at Credit Suisse noted the failure of Amcenestrant as "clearly negative" for Sanofi. Amcenestrant was a key oncology asset in Sanofi's pipeline with potential to drive growth from 2025. As a result, shares of Sanofi tumbled as much as 4.6% at 10:00.
Walmart, on the other hand, is focusing more on groceries and attracting inflation-worried customers with discounts. This strategy seems to be paying off, as Walmart and Home Depot reported surprisingly strong results yesterday, boosting US markets.
Target's shares dropped following its reported profit decline and sales miss because investors reacted negatively to weaker-than-expected financial performance. This divergence suggests that Target's operational challenges and sales slowdown are causing investor concern, prompting selling pressure on its stock. Specifically, Target shares fell around 0.73% on August 1, 2025, coinciding with lower trading volume and ongoing downward momentum after its disappointing earnings announcement.
In summary, Target’s shares dropped primarily because its profit and sales results fell short of expectations amid a challenging retail environment, while competitors demonstrated stronger performance, resulting in a negative market reaction towards Target. The failure of Amcenestrant also had a significant impact on Sanofi's shares, underscoring the importance of successful drug launches in the pharmaceutical industry.
A) In the retail sector, Target's shares dropped following its reported profit decline and sales miss because investors reacted negatively to weaker-than-expected financial performance. This indicates a concern about Target's operational challenges and sales slowdown, leading to selling pressure on its stock.
B) Managing finance is crucial for a pharmaceutical company's success, as evidenced by the significant impact felt by Sanofi after the failure of its breast cancer drug Amcenestrant. The failure was seen as "clearly negative" by analysts at Credit Suisse, negatively affecting Sanofi's shares and underlining the importance of successful drug launches in driving growth.
