Stocks advance for second straight day despite Target profit warning

U.S. stocks charged forward to close a turbulent session higher Tuesday after investors shook off a profit warning from Target that weighed on broader markets in earlier trading.

The S&P 500 rose about 1%, and the Dow Jones Industrial Average gained 264 points, or 0.8%. The tech-heavy Nasdaq advanced roughly 0.9%. The indexes climbed after struggling for direction for much of the day. Meanwhile, the 10-year U.S. Treasury benchmark retreated to dip below 3%.

Target (TGT) was in focus during the morning trade after the retailer slashed its guidance and said it was aiming to trim down excess inventory by offering discounts, canceling orders and reevaluating its expenses – an announcement that comes just weeks after the company shocked investors with a dramatic earnings miss that sent shares down 25%.

Target’s stock closed down 2.3%. The warning also weighed on other retail peers as a growing number of companies sound the alarm over the toll of inflation and supply chain imbalances on their margins. Shares of Walmart (WMT) fell 1.2% and Costco (COST) closed just below flat.

Elsewhere in markets, oil topped $120 per barrel, giving a boost to the energy sector. Shares of Exxon (XOM) rose 4.6%, marking the oil conglomerate’s biggest intraday gain after analysts at Goldman Sachs and Credit Suisse hiked their price targets the company. The stock topped $100 for the first time since 2014.

Kohl’s (KSS) was also in the spotlight after reports Vitamin Shoppe owner Franchise Group is in…