Target (TGT) stock tumbles 20% after the company reported earnings results that fell short of analyst estimates. D.A. Davidson managing director and senior research analyst Michael Baker joins Seana Smith and Brad Smith on Morning Brief to discuss the results and what they signal about the retail space ahead of the holiday season.

The results "weren't great," Bakers says, explaining there was "weakness in the third quarter, particularly in discretionary categories. Inventory was a little bit high and continued weakness. [And] it sounds like into the fourth quarter with some potential markdown risks."

"Really, the trifecta, I suppose, of bad news, and it is worrisome. I think it's more worrisome for Target specifically than for the overall consumer economy. There are other retailers that are actually doing a little bit better than expected in this environment. So, it does feel like the environment is weighing on Target, but in addition to that, there does seem [to be] some company-specific issues here as well.

Watch the video above for more on Baker's expectations for similar retailers like Walmart (WMT).

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This post was written by Naomi Buchanan.