Nasdaq index outperforming, retail stocks tick higher following earnings this morning

Yahoo Finance markets contributor Remy Blaire joins the Live Show to discuss the latest market performances and what contributed to the Nasdaq outperforming U.S. index peers.

Video transcript

BRAD SMITH: Let's head on over to the New York Stock Exchange with Yahoo Finance contributor Remy Blaire with the latest market action here early in today's trade. Remy--

REMY BLAIRE: Well, US markets have opened higher with the major equity indexes all in positive territory. The Dow Industrials, NASDAQ, and the S&P 500 are all higher on this Wednesday morning. And believe it or not, in terms of the NASDAQ 100 index, it is up by a whopping 20% year to date. And that is a stark contrast to the Dow Industrial average.

Now, what's behind this outperformance for the NASDAQ 100? Well, better than expected earnings from top tech names, including Alphabet, as well as Apple and Microsoft, have contributed to these gains. And today, all eyes do remain on retail earnings.

We got results out from TJ Maxx, as well as TJX, which is the parent company for TJ Maxx, as well as HomeGoods, as well as Target. And as mentioned earlier, Target's results did beat expectations, but it was not quite a bull's eye. For the retailer, it did reported earnings beat, but shoppers do remain cautious. And this is a trend we've been seeing with Home Depot earnings, as well, and we will be getting more retail earnings out this week.

So consumers are being very cautious in terms of discretionary spending, and both profits, as well as sales growth for Target were down in the recent quarter. We're seeing consumers spend less on discretionary items and spending more on food as well as household goods.

And we are seeing TJX companies shares higher in tandem with Target shares this morning. The company reported its annual profit forecast and that parent company of TJ Maxx, as well as HomeGoods, is betting on lower costs, as well as demand from price conscious consumers.

Now, TJX is seeing expenses come down after higher freight, as well as labor costs ease in the latest quarter, which means a boost to margins. The company is also expecting 2024 adjusted profit to come in above its previous range, and it also maintained its full year forecast.

JULIA HYMAN: Thanks, Remy. Appreciate it.