Target (TGT) Triumph: Profits Soar 15% with Operational Excellence in Q3

Target Corp. (TGT) shares surged following a strong third-quarter earnings report, showcasing enhanced operational efficiency. Improved inventory management and reduced markdowns contributed to profits surpassing estimates, despite a decline in sales. 

Inventory dropped by 14% from the previous year, marking a consistent trend. The stock experienced its most significant rise since August 2019, soaring up to 15% in New York trading.

Post-Rally: Treasuries Decline, U.S. Retail Resilience, and Producer Prices Drop

In the aftermath of a rally, Treasuries experience a decline as astute traders meticulously assess data. Despite a tempered pace in U.S. retail sales preceding the holiday season, their resilience persists. Notably, producer prices exhibit their most substantial decline since April 2020, primarily attributed to a downturn in gasoline prices.

Inflation Eases: U.S. Producer Prices Fall Below Forecasts

Further indications of abating inflation are evident as U.S. Producer Prices experienced a 0.5% decline in October, with a mere 1.3% rise over the past year. These figures significantly deviated from consensus forecasts, which anticipated a 0.1% monthly increase and a 2.0% year-on-year upturn.

Inflation In Europe Running Hot

"The overall read for EU inflation comes in hotter than expected, with core inflation accelerating to a record 5.6%. Consumer prices rise 8.5% year over year vs an estimate of 8.3%. German 2-year yields hit new post-2008 highs."

--Lisa Abramowicz, Bloomberg

Central Banks Created All This Inflation Nightmare

"The Federal Reserve and other central banks spent over a decade deliberately creating inflation. We're now starting to suffer the consequences, as consumer prices must rise to find a new equilibrium price between the supply of goods for sale and the quantity of money available to buy them."

-- Peter Schiff 

The ECB Made An Error

"In 2018 the official inflation rate in the Eurozone was 1.74%. But the European Central Bank (ECB) thought 1.74% was too far below its mandate of inflation close to, but below 2%. So the European Central Bank (ECB) held the deposit rate at -.4% and continued a massive QE program to lift the rate closer to 2%. Now it's 8.4%!"

-- Peter Schiff

The End Of Desinflation

"Perhaps today's hotter than expected inflation data will be a wakeup call to investors that the CPI improvements in recent months were transitory. The 6.4 percent year-on-year rise in January CPI was two basis points above expectations and may mark the trough in year-on-year inflation rates and the end of disinflation."

-- Peter Schiff