Stocks retreat after Apple hits $2T in market value

Target and Lowe's join Walmart in blowing past earnings estimates

U.S. equity markets fell across the board Wednesday, ending the session lower after hitting record intraday highs as Apple became the first U.S. company to attain a $2 trillion market valuation and investors digested another batch of strong retail earnings.

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The S&P 500 fell 0.44% while the Nasdaq slipped 0.57%. Both indexes finished the prior session in record territory.

TickerSecurityLastChangeChange %
SP500S&P 5003319.47-37.54-1.12%
I:COMPNASDAQ COMPOSITE INDEX10793.28193-116.99-1.07%
I:DJIDOW JONES AVERAGES27657.42-244.56-0.88%

The Dow Jones Industrial Average, of which Apple is a member, fell 85 points, or 0.31%, after ending Tuesday 6.38% below its February peak.

Federal Reserve officials, in their latest minutes, remained cautious over the health of the U.S. economy.

APPLE BECOMES AMERICA'S FIRST $2T COMPANY

Apple shares crossed $467.77, making the tech giant the first U.S. company to reach the coveted $2 trillion market capitalization. The stock ended higher, but pulled back from the milestone.

TickerSecurityLastChangeChange %
AAPLAPPLE INC.106.84-3.50-3.17%

Looking at earnings, Target Corp. comparable sales grew at a record 24.3% during the three months through June as customers stocked up on electronics, home goods, food and essentials while taking advantage of same-day service options amid the COVID-19 pandemic.

"Our second quarter comparable sales growth of 24.3 percent is the strongest we have ever reported," said CEO Brian Cornell in the company's earnings announcement. Digital sales increased 195% versus last year.

TickerSecurityLastChangeChange %
TGTTARGET CORP.148.82+1.21+0.82%
LOWLOWE'S COMPANIES INC.160.10-3.68-2.25%

Lowe’s Companies Inc. beat on both the top and bottom lines as its U.S. home-improvement business saw sales at stores open at least 12 months rise 35% from a year ago.

TickerSecurityLastChangeChange %
LUVSOUTHWEST AIRLINES CO.39.83-0.57-1.41%
GTGOODYEAR TIRE8.59-0.37-4.13%

Meanwhile, Goodyear Tire & Rubber Co. shares fell after President Trump called for a boycott after some employees said they were told they could wear Black Lives Matter apparel but not clothing with logos such as MAGA or Blue Lives Matter.

Elsewhere, Southwest Airlines Co. lowered its daily cash-burn forecast for the third quarter to $20 million per day, down from $23 million, amid a pickup in bookings in August. The company expects capacity to be down 30% to 35% during the current quarter, a slightly bigger decline than its previous expectation of 20% to 30%.

On the deals front, Johnson & Johnson agreed to pay $6.5 billion, or $52.50 per share, for Momenta Pharmaceuticals Inc., an autoimmune disease specialist. The deal represents a 70% premium over Momenta's valuation on Tuesday.

TickerSecurityLastChangeChange %
JNJJOHNSON & JOHNSON149.18+2.01+1.37%
MNTAMOMENTA PHARMACEUTICALS INC52.26-0.07-0.13%

Looking at commodities, West Texas Intermediate crude oil rose 4 cents to $42.93 per barrel while gold dropped $40.70 to $1,958.70 an ounce.

U.S. Treasurys gained, pushing the yield on the 10-year note down to 0.674%.

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In Europe, Britain’s FTSE climbed 0.58%, Germany’s DAX gained 0.74% and France’s CAC added 0.79%.

Asian markets finished mixed as Japan’s Nikkei climbed 0.26% while Hong Kong’s Hang Seng and China’s Shanghai Composite fell 0.74% and 1.25%, respectively.