Stock Market Update

[BRIEFING.COM] The major averages continue to chart session highs at midday.

Ross Stores (ROST 239.95, +10.96, +4.79%) is trading nicely higher after a strong Q2 (Jul) report last night, marking another strong quarter, with a second consecutive double-digit comp that was again primarily transaction-driven and supported by broad customer gains across income and age groups. Although the outsized EPS beat and increase to full-year guidance include the roughly $0.60 tariff-refund benefit, results still came in above expectations and prior guidance excluding that benefit, supported by solid underlying margin expansion. The raised back-half comp outlook is also encouraging, especially as ROST faces increasingly difficult comparisons following several quarters of strong growth. Peer TJX (TJX 140.66, -0.04, -0.02%) confirmed a favorable off-price backdrop earlier this week, although ROST's broad-based strength stands in contrast to the merchandise-mix and planning issues that weighed on Marmaxx.