The Dow Jones Industrial Average reversed higher Wednesday ahead of minutes from the Federal Reserve’s July policy meeting. Meanwhile, Tesla stock skidded after the electric-vehicle giant cut prices in China for the second time in less than a week.
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The Fed minutes, due out at 2 p.m. ET, are expected to provide insight into the Federal Reserve’s thinking on future interest rates.
Ahead of the market open, the Commerce Department released figures on housing starts and permits. Housing starts in July rose to 1.452 million, while permits inched up 1.442 million. Both came in slightly below estimates of 1.455 million and 1.464 million, respectively.
Elsewhere, Asian markets came under pressure Wednesday after defaults mounted for China’s Zhongrong International Trust. The bank is seen as a financial sector linchpin in the country’s massive, unregulated shadow banking sector. Zhongrong has no immediate plan to cover what are now dozens of payments in default, since its short-term liquidity has suddenly dried up, according to a company official quoted by Bloomberg.
Early Wednesday in the U.S., China-based stocks led the early declines on the Nasdaq 100. JD.com (JD) and Tencent Holdings (TCEHY) reported earnings. Other key earnings movers included Cava (CAVA), Coherent (COHR), Target (TGT) and TJX (TJX).
Cava raced 3% higher in morning trade, while Coherent plunged 32%. JD shares declined more than 4%, as TJX rallied 3.3% in early action.
Finally, Target surged more than 6% after the company handily topped earnings estimates. Target reported earnings of $1.80 per share for the quarter compared with 39 cents a share last year. The results mark a major turnaround after earnings fell for the past five quarters. Sales fell for the first time in almost six years as total revenue declined 4.9% to $24.8 billion.
Tesla Slashes Prices
IBD Leaderboard stock Tesla (TSLA) skidded another 2.8% Tuesday, closing further below its 50-day line. Amid the continued selling, it’s clear that the stock requires more time to consolidate before a new entry.
Tesla cut the price…
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