Stock Market Today: Tiffany’s Big Beat and Target’s Canada Struggles

Why Tiffany and Target stocks are on the move today.

May 21, 2014 at 9:25AM

The Dow Jones Industrial Average (DJINDICES:^DJI) has gained 58 points in pre-market trading, suggesting a positive start to the stock market today. Still, investors can expect volatility ahead after the Federal Reserve releases minutes from its latest monetary policy meeting at about 2 p.m. EDT. Wall Street will scrutinize the update for any clues as to when the central bank will begin raising long-term interest rates that have been hovering near zero since 2009. 

Effective Federal Funds Rate Chart

Effective Federal Funds Rate data by YCharts.

Meanwhile, news is breaking this morning on two stocks that should see heavy trading in today's session: Tiffany (NYSE:TIF) and Target (NYSE:TGT).


Tiffany today posted surprisingly strong first-quarter earnings results. The jewelry retailer's sales jumped higher by 13% to $1 billion, while profit rose 50% to $0.97 a share. Wall Street was expecting just $955 million in revenue and per-share earnings of $0.78. There was a lot for investors to like in this report beyond those headline numbers: comparable-store sales improved by 8% in its Americas region, and overall profitability rose by 2 percentage points to 58.2% of sales. Tiffany's new jewelry collections are resonating with luxury shoppers around the world, giving the company confidence to raise its full-year profit outlook to $4.20 a share. The stock was up 7.4% in pre-market trading.

Target this morning booked a 14% drop in profit for its fiscal first quarter. As expected, sales ticked higher by 2% to $17 billion while adjusted earnings came in at $0.70 a share. Those results were held back by a 0.3% decline in comparable-store sales in the U.S., along with a big dip in profitability from Target's struggling Canada business. Interim CEO John Mulligan said in a press release that the company is seeing "early signs of improvement" in both those areas, but that Target will ramp up spending to put sales and profit growth back on track. The additional investments will hurt this year's earnings, which are now expected to be close to $3.75 a share, down from $3.90. Additional expenses from last year's data breach could also have a "material adverse effect" on results for this year or in future periods, the company warned. Target's stock was just above breakeven in pre-market trading.

Your credit card may soon be completely worthless
It isn't the fault of Target's data breach, but the plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player. When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.

Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information