TJX Companies Inc. sells name-brand merchandise at discounted prices. The company operates 5,260 stores, with 3,825 T.J. Maxx, Marshalls, HomeGoods, Homesense, and Sierra stores in the U.S., 593 stores in Canada, and 844 stores in Europe and Australia. Sales in FY25 were $56 billion, and FY26 sales were $60.4 billion. Clothing and footwear is the major product category, at approximately 44% of sales. Jewelry and accessories represent 20% and home products represent 36%. The company, based in Framingham, Massachusetts, has approximately 377,000 associates worldwide and more than 21,000 vendors sourcing products from over 100 countries. E-commerce represents less than 3% of sales. The HomeGoods division in the U.S. represents approximately 17% of company sales. Much of the 'home' merchandise consists of accessories, gift items, products for kids, and even packaged food. The HomeGoods and Homesense businesses have more 'big' items like lamps, furniture, and rugs than T.J. Maxx and Marshalls. Based on the company's reported segments, the U.S. represents 78% of sales and Canada about 9%. The International segment accounts for 13% of sales (12% Europe, 1% Australia). We don't have a revenue breakdown in Europe, but approximately 60% of the segment's stores are in the U.K, 23% are in Germany, and 7% are in Poland. The rest are in Ireland, Austria, and The Netherlands. The company's fiscal year ends on the Saturday nearest to the last day of January.

The major stock indices are lower at midday. Inflation data released this morning continues to support that prices are elevated and not edging lower as had hoped. Meanwhile, traders await the all-important earnings report from Nvidia, due out after the close. Crude oil is at $82 per barrel and the yield on the 10-year note is at 4.65%

Kohl’s is the second-largest traditional US department store company by sales. It has about 1,150 stores in 49 states and offers moderately priced private-label (31% of 2025 sales) and national brand clothing, shoes, accessories, cosmetics, and home furnishings. Most (about 80%) of its stores are in strip centers. Kohl's also has a large digital sales operation (29% of 2025 sales). Women’s apparel is the retailer’s largest category, having generated 24% of its 2025 sales. Kohl’s is headquartered in Menomonee Falls, Wisconsin, and was founded in 1962.

The Bureau of Labor Statistics (BLS) released the Employment Situation for May. The U.S. added 172,000 non-farm jobs, helped by strength in leisure and hospitality; local government; and the stalwart Healthcare sector. Employment in financial activities declined. Our forecast was for an increase of 125,000 new jobs in May, while the consensus was 85,000. The results raised the three-month average to 188,000 from 48,000 before the report. April's payrolls were revised higher by 64,000 to 179,000 and March was increased by 29,000 to a gain of 214,000. In addition, the decline in February payrolls rolled out of the calculation. The BLS Diffusion Index indicated 54.4% of 250 private industries are hiring, up from 54.0% in April. Manufacturing rose to 53.5% from 46.5%. The unemployment rate was unchanged at 4.3%, which matched our estimate and the consensus. Average hourly earnings increased $0.12 month to month and are 3.4% higher year over year. The average workweek was unchanged at 34.3 hours. Employment showed little change in construction; manufacturing; wholesale trade; retail trade; information; professional and business services; and other services. Employment declined by 22,000 in financial activities and is down by 107,000 since a recent peak in May 2025. There were notable job losses (-11,000) in insurance carriers and related activities in May. The manufacturing sector added 7,000 jobs. Stock futures were mixed after the report. The yield on the 10-year Treasury jumped by seven basis points to 4.54%. The yield on the 2-year Treasury, which is closely tied to expectations for monetary policy, was up 10 basis points to 4.16%. Based on futures trading, there is a 31% probability that the fed funds rate will end the year at the current 3.5%-3.75% target range, and a 1% probability of a rate cut. The probability that the funds rate will be higher at the end of the year rose to 68%, from 49%.