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PAGE<br />
6<br />
trade<br />
war deals<br />
its first<br />
blows<br />
Buckle up:<br />
President<br />
Trump’s battle<br />
with the U.S.’s<br />
largest trading<br />
partners is just<br />
getting started.<br />
$100 B<br />
TOTAL AMOUNT<br />
of reciprocal<br />
tariffs imposed<br />
by the United<br />
States and China<br />
on 1,761 goods<br />
$594 B<br />
GLOBAL<br />
MARKET CAP<br />
lost since<br />
tariffs were<br />
announced, as<br />
measured by<br />
S&P Global BMI<br />
-15%<br />
U.S. OIL<br />
DISCOUNT<br />
to world<br />
benchmark<br />
144<br />
DAYS ELAPSED<br />
since last<br />
S&P 500<br />
high—the<br />
longest period<br />
in the Trump<br />
presidency<br />
—LUCINDA SHEN<br />
DATA AS OF 6/18/18<br />
Online Success<br />
Doesn’t Come Cheap<br />
Target is holding its own against Amazon—but<br />
at too great a price, investors fear. By Phil Wahba<br />
BEING A CONTENDER<br />
E-COMMERCE<br />
can cost a lot<br />
of money. Target shareholders<br />
were reminded of that when the discount retailer<br />
recently reported strong online sales growth in its<br />
first quarter, figures that showed it is holding its<br />
own against Amazon and Walmart.<br />
Digital sales rose 28% even as more shoppers<br />
came to stores, showing that Target’s eforts to<br />
one-two punch web and brick-and-mortar retail is<br />
FORD’SICONICMOVE<br />
working. But that has<br />
come at a price that<br />
worries some investors,<br />
as the sharp<br />
drop in Target’s stock<br />
the day of that earnings<br />
result showed.<br />
Target’s operating<br />
income margin<br />
fell, and the retailer’s<br />
recent 40% cut to<br />
the price of next-day<br />
delivery will bite<br />
into profits, as will<br />
its $7 billion multiyear<br />
program to<br />
freshen up stores<br />
and improve its<br />
e-commerce.<br />
Walmart, Kohl’s,<br />
and Nordstrom<br />
have also poured<br />
billions into their<br />
e-commerce oferings<br />
and been periodically<br />
punished for it by<br />
Wall Street, despite<br />
building thriving<br />
online businesses.<br />
Investors may have<br />
to buck up about<br />
the expenses all this<br />
entails. It’s simply the<br />
cost of doing business<br />
in the Amazon era.<br />
MICHIGAN Central Station,<br />
CITIES<br />
the poster child for Detroit’s<br />
urban blight, could soon be a beacon for<br />
its regeneration after being bought by the<br />
Ford Motor Co.<br />
Abandoned for more than three decades,<br />
the monolith will form part of a 1.2-millionsquare-foot<br />
campus in the Corktown<br />
neighborhood and will house teams<br />
working on new mobility technologies.<br />
www.t.me/velarch_official<br />
ARROWS: MIRONOV KONSTANTIN— GETTY IMAGES; MICHIGAN CENTRAL: SPENCER PLATT/GETTY IMAGES<br />
16<br />
FORTUNE.COM // JULY.1.18
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