All eyes were on the retail sector as the holiday season barrels towards consumers.
Jim Cramer gave his thoughts on the retail sector going into the end of 2018 and what he thinks may be affecting the sector.
Earlier this week, Target (TGT) , Kohl's (KSS) , and TJ Maxx (TJX) reported earnings that disappointed Wall Street. Kohl's, while it beat quarterly expectations, was hit when it announced slower growth.
TheStreet's Martin Baccardax reported on Target's earnings.
"Target said adjusted earnings for the three months ending on November 3, its fiscal third quarter, came in at $1.09 per share, missing the Street consensus of $1.12 and rising 20.2% from the same period last year. Group sales, Target said, jumped 5.4% to $17.59 billion, matching analysts' forecasts, but noted that same store sales grew 5.1% compared to a 5.2% forecast. Target also said its third quarter gross margin, a key metric for profitability, fell 90 basis points to 28.7%, thanks in part to higher supply-chain costs as part of its drive towards digital sales and rising wage and training costs," he wrote.
Cramer says that he believes the Federal Reserve's rate hikes may be somewhat at fault for Wall Street's response to retail.