Black Friday at Target in 2016. Photo: Aydin Palabiyikoglu/Anadolu Agency/Getty Images

Target shares fell as much as 11% this morning after it narrowly missed analyst expectations for the quarter, as massive selling took all three major U.S. stock indices underwater for the year.

The big picture: In trading this morning, the Dow, the S&P and Nasdaq all wiped out their gains for the year. Retail stocks were hit hard just three days before Black Friday, the biggest brick-and-mortar shopping event of the year.

The other side: Many traditional retailers have reported strong sales growth quarter after quarter this year — Target reported today that sales surged 5.1% in the third quarter, for example.

  • The National Retail Federation projects U.S. holiday spending this season to reach an all-time high. It says Americans will spend 4.1% more this year than last.

The bottom line: Markets are jittery amid the U.S.-driven trade war, slowing global economic growth and a cloud around Big Tech. That U.S. economic fundamentals appear strong has not seemed to matter to Wall Street investors.

Go deeper

Updated 12 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Politics: Biden ahead in Wisconsin, Michigan as cases surge in the Midwest.
  2. Health: Fauci says U.S. may not return to normal until 2022 — Trump's testing czar: Surge "is real" and not just caused by more tests Some coronavirus survivors have "autoantibodies."
  3. Business: Consumer confidence sinking Testing is a windfall.
  4. World: Europe faces "stronger and deadlier" wave France imposes lockdown Germany to close bars and restaurants for a month.
  5. Sports: Boston Marathon delayed MLB to investigate Dodgers player who joined celebration after positive COVID test.
39 mins ago - Health

Fauci says U.S. may not return to normal until 2022

Director of the National Institute of Allergy and Infectious Diseases, Anthony Fauci, testifies during a September Senate hearing on COVID-19 in Washington, D.C. Photo: Graeme Jennings/Pool/AFP via Getty Images

NIAID director Anthony Fauci told the Journal of the American Medical Association on Wednesday he doesn't expect a COVID-19 vaccine to be ready until January 2021 or later.

What he's saying: Fauci said during the interview that the U.S. was in a "bad position" after failing to keep case numbers down post-summer. "We should have been way down in baseline and daily cases and we’re not," he said.

Hurricane Zeta makes landfall on Louisiana coast as Category 2 storm

A satellite image of Hurricane Zeta. Photo: National Hurricane Center/NOAA

Hurricane Zeta is "battering southeastern Louisiana and southern Mississippi with life-threatening storm surge, high winds, and heavy rain," per the National Hurricane Center.

What's happening: The hurricane was producing maximum sustained winds of nearly 110 mph and stronger gusts after making landfall on the southeastern coast of Louisiana as a Category 2 storm earlier Wednesday. By nightfall, Zeta had sustained winds of 80 mph with a wind gust of 104 mph.

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