What do Target’s earnings signal to other retailers?

Target ( TGT ) shares are down 20% after the company reported earnings results that missed analysts’ estimates. DA Davidson CEO and Senior Analyst Michael Baker joins Sean Smith and Brad Smith on Morning Brief to discuss the results and what they signal about the retail space ahead of the holiday season.

Results “were not great,” Bakers says, explaining that there was “weakness in the third quarter, particularly in discretionary categories. Inventory was a little bit high and continued weakness. (And) it sounds like the fourth quarter has some potential impairment risks.”

“Really, the trifecta, I guess, of bad news, and that’s worrisome. I think it’s more worrisome for Target specifically than for the overall consumer economy. There are other retailers that are actually doing a little bit better than expected in this environment So it feels like the environment is weighing on Target, but beyond that, there also seem to be some company-specific issues here.

Watch the video above for more on Baker’s expectations for similar retailers like Walmart ( WMT ).

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This post was written by Naomi Buchanan.