Tariff-Driven Inflation Worries Overshadowed Wall Street Trading Amid Mixed Earnings from Retailers

Barry Adams
20 Aug, 2025
New York City

Wall Street indexes slipped for the second consecutive day amid a broad decline in tech stocks, and investors reviewed the latest batch of earnings from retailers. 

The S&P 500 index decreased 0.8%, the Nasdaq Composite dropped 1.4%, and tech stocks led the decliners for the second consecutive session. 

Lowe's Companies, Target, and TJX Companies were in focus as investors looked for clues for how consumers are adjusting to rising prices. 

Toll Brothers' earnings beat market expectations, but the expensive homebuilder offered a softer outlook, and La-Z-Boy's outlook and quarterly earnings fell short of expectations. 

Stock market indexes are struggling near record highs, as tariff worries resurfaced and corporations prepare to pass over higher import fees to consumers from this month. 

Food prices soared over the last two months after the U.S. government stepped up detentions of migrant workers on farms and in meat processing facilities and escalated import duties on goods from Brazil, India, Mexico, Chile, Canada, and the European Union. 

Moreover, over the last three months, extreme weather across several regions in the U.S. also impacted crop production. 

 

U.S. Stock Movers 

Toll Brothers Inc. decreased 1.1% to $130.08, and the expensive home builder reported better-than-expected revenue and earnings in the fiscal third quarter. 

The home builder reported record third-quarter earnings, but the company issued a softer outlook. 

La-Z-Boy Inc. dropped 20% to $31.25, and the maker of recliners reported a weaker-than-expected earnings per share of 47 cents in the fiscal third quarter. 

The company's outlook for the current quarter fell short of market expectations. 

Semiconductor makers were in focus after the U.S. Secretary of Commerce, Howard Lutnick, said that the federal government is looking to acquire stakes in companies in exchange for grants under the CHIPS Act.

Intel Corp. decreased 1.6% to $24.90, Micron Technology fell 1.9% to $119.70, and Nvidia Corp. decreased 0.3% to $175.30. 

Target Corp. dropped 8.9% to $94.52 after the retailer reported a decline in sales in the second quarter, and same-store sales and consumer transactions also declined. 

Net sales in the second quarter declined 0.9% to $2.5 billion, comparable store sales dropped 1.9%, and consumer transactions decreased 1.3%. 

However, online sales rose 4.5%, driven by a 25% surge in same-day delivery. 

For the fiscal year, the company retained its outlook of a single-digit decline in sales and earnings per share between $8.0 and $10.0.

The retailer estimated adjusted earnings per share, which excludes gains from litigation settlements in the first quarter, to fall between $7.0 and $9.0.

In addition, the company announced that the longtime CEO Brian Cornell would retire in February, and chief operating officer Michael Fiddelke, a two-decade veteran at the company, will assume the post on February 1.

Lowe's Companies Inc. added 1.9% to $261.29 after the home improvement retailer's second-quarter earnings beat expectations. 

The do-it-yourself retailer said sales in the fiscal second quarter ending on August 1 increased 1.7% to $24.0 billion, net income advanced to $2.4 billion from $2.38 billion, and diluted earnings per share rose to $4.27 from $4.17 a year ago. 

Same-store sales in the quarter rose 1.1% from a year ago. 

The company tightened its full-year sales range to between $84.50 billion and $85.50 billion, compared to the previous range between $83.50 billion and $4.50 billion. 

The retailer forecast the full-year diluted earnings per share range to be between $12.10 and $12.35, from the previous range between $12.15 and $12.40.

The TJX Companies Inc. increased 5% to $141.46 after the retailer reported better-than-expected quarterly earnings and revised higher its outlook. 

Net sales in the fiscal second quarter ending on August 2 rose 7% to $14.4 billion, driven by a comparable sales rise of 4%. 

Net income in the quarter rose 15% to $1.24 billion from $1.1 billion, and diluted earnings per share advanced to $1.10 from 96 cents a year ago.