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Stocks pulled back Tuesday, with Target’s fresh profit warning weighing on other retail shares and putting consumer demand considerations in the spotlight ahead of the government’s latest inflation report due this week. 

All three of Wall Street’s major benchmarks fell after gaining in Monday’s session. Target shares dropped after the  general merchandise retailer for cut its second-quarter profit margin outlook for the second time since mid-May. It said it’s cutting prices to move an inventory pileup and is seeing customers pull back on discretionary spending to focus on purchasing food and household essentials. Shares of other retailers were lower, including Walmart, Costco,  and TJX. 

Target, like all companies, is keeping watch on shifting customer demands in a hot inflationary environment. Investors will get the May consumer inflation report on Friday, with an Econoday consensus estimate of 8.2%.

Around the markets, the Securities and Exchange Commission is preparing to outline its plan to overhaul how the US stock market operates — a move that could see trading firms compete in auctions to carry out orders from retail investors. 

Goldman Sachs economists have projected oil prices will surge to $140 a barrel this summer on a drop in Russian production and a gradual recovery in Chinese demand. 

Oil prices edged down. West Texas Intermediate crude was off by $0.02 at $118.48 per barrel. Brent crude, the international benchmark, slipped 0.1% to $119.37. 

Gold rose 0.2% to $1,847 per ounce. The 10-year Treasury yield fell four basis points to 3.01%. 

Bitcoin fell 6.2% to $29,491.27.

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