Summer rally takes a breather | Retail earnings, sales in focus | What the meme frenzy means for markets

Stocks dipped on Wednesday, as investors turned their attention to retail earnings and sales.

VIEW IN BROWSER | SUBSCRIBE WED, AUG 17, 2022 EVENING BRIEF AS OF WED, AUG 17, 2022 • 04:52 ET DJIA 33980.32 -0.50% -171.69 S&P 500 4274.04 -0.72% -31.16 NASDAQ 12938.12 -1.25% -164.43 Most Active DOW NAME LAST CHG %CHG AAPL 174.55 +1.52 +0.88% INTC 35.78 -0.41 -1.13% CSCO 46.66 -0.11 -0.24% S&P 500 NAME LAST CHG %CHG AAPL 174.55 +1.52 +0.88% AMD 98.27 -1.93 -1.93% F 16.03 -0.40 -2.43% NASDAQ NAME LAST CHG %CHG AAPL 174.55 +1.52 +0.88% AMD 98.27 -1.93 -1.93% AMZN 142.10 -2.68 -1.85% EDITOR'S NOTE Retail earnings continued Wednesday with quarterly reports from Target and Lowe's following strong results from Home Depot and Walmart on Tuesday.   Investors have been closely watching the results from these major retailers for further insight into how consumers – and consumer spending – are faring in the face of rising inflation.   "We've seen mixed results out of retailers and the big questions are whether the consumer will keep spending and how will they reallocate their purchases as inflation continues to impact spending choices," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.   Other retailers also made headlines on Wednesday, with shares of Bed Bath & Beyond surging 11.8%, bringing its gains for August to nearly 359% as the meme stock rally continues.    Investors weighed a fresh batch of retail sales data, which remained unchanged for July across the board, but showed signs of strength in areas like online sales and consumer discretionary. Which retailers do the best in this climate is dependent on their target market.   Speaking on CNBC's "Power Lunch" Wednesday, former Saks CEO Steve Sadove said he believes high-end and the value-end retailers should fare best. Grocery and some apparel and luxury areas are also doing better.   Loop Capital's Anthony Chukumba sees value in dollar stores, which sit in a "sweet spot" poised to benefit from higher-income consumers trading down and lower-income consumers seeing an increase in pricing power, he said in a note to clients.   "The consumer's still spending, they're spending differently," Sadove said. "I think that's the important part here." Samantha Subin | Associate Markets Reporter @samantha_subin Watch our live stream for all you need to know to invest smarter. TOP NEWS  Dow closes lower Wednesday to end 5-day win streak, Wall Street mulls new retail data Fed sees interest rate hikes continuing until inflation eases substantially, minutes show Retail sales little changed in July amid fall in gas prices and drop in auto sales Target's earnings take a huge hit as retailer sells off unwanted inventory Bed Bath & Beyond surges again on Wednesday, continuing August meme rally Frenzied trading in meme stocks is a warning sign for the broader market Monkeypox cases jumped 20% in the last week to 35,000 across 92 countries, WHO says Lowe's reports mixed second-quarter results, citing shortened spring that hurt sales Behind Warren Buffett's increasing bet on this under-the-radar American lender Security situation in Crimea deteriorates for Moscow; pro-Russian breakaway region cozies up to North Korea TOP VIDEO This is still a bear market rally, says Decatur Capital Management's Degas Wright CNBC PRO Citi says sell into any strength as the S&P 500's comeback takes out its year-end target SPECIAL REPORTS Student loan repayment is set to resume in two weeks — expert believes freeze will remain What college students need to know about doing their taxes Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy © 2022 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS