Connect with us

Business

Dow Jones falls 1,200 points, stock market sell-off continues as major retailers warn of rising cost pressures

Dow Jones falls 1,200 points, stock market sell-off continues as major retailers warn of rising cost pressures

 


Topline

The stock market sell-off resumed on Wednesday amid reinvigorated fears of soaring inflation weighing on economic growth, as several major retailers have now signaled that quarterly profits have been hit due to mounting pressures on stocks. costs.

Highlights

The sell-off on Wall Street intensified: The Dow Jones Industrial Average fell 3.8%, more than 1,200 points, while the S&P 500 lost 4.3% and the tech-heavy Nasdaq Composite 4.9%.

Markets slumped after disappointing quarterly results from major retailers: Target shares fell more than 25% after the company warned of rising costs and supply chain issues hitting profits, with the stock poised for its worst single-day decline in about 25 years.

The news comes on the heels of a gloomy outlook for Walmart, the nation’s largest retailer severely undercutting profit expectations due to rising costs, sending shares tumbling 11% on Tuesday in their biggest one-day drop since 1987.

< position="inread" progressive="" ad-id="article-0-inread" aria-hidden="true" role="presentation"/>

Both results weigh heavily on markets on Wednesday, with the S&P 500 Retail ETF falling more than 5% amid fears that US consumers will feel the impact of soaring inflation.

Other major retailers, many of which have quarterly results coming in the coming weeks, saw their stocks plunge: Best Buy, Dollar General, Dollar Tree, Macys and Kohls all fell 8% or more.

The market declines come after stocks made a small comeback on Tuesday when the Dow Jones jumped 400 points after Federal Reserve Chairman Jerome Powell said the central bank would not hesitate to continue to rise rates until it sees moderate inflation at healthier levels.

Crucial quote:

The tax of inflation is being felt most by retailers, as two of the country’s largest retailers have been completely destroyed in the past two days, according to a note from Bespoke Investment Group. If you thought yesterday’s pounding of Walmart’s 11% was bad, meet Target.

To monitor :

The experiences of both companies further reinforce the fact that we operate in one of the most complicated macroeconomic environments any business or investor has ever faced, says Bespoke. If Walmart and Target have these kinds of problems keeping up with the rapidly changing environment, who doesn’t?

Contra:

It’s understandable that investors are feeling pretty gloomy given the steep post-earnings declines in Walmart and now Target stocks, says Vital Knowledge founder Adam Crisafulli. He argues that it is not accurate to simply say that the consumer must weaken if these two companies explode, because the reality of consumer spending is much more nuanced and not as negative. Consumers remain relatively healthy, and most retail management teams are still seeing solid spending levels overall, Crisafulli points out.

Further reading:

Target stock plunge wipes $25 billion after dramatic shortfall as inflation squeezes customers and drives up costs (Forbes)

Dow jumps 400 points after Powell said the Fed would not hesitate to continue raising rates to fight inflation (Forbes)

Warren Buffett’s $51 Billion Stock Market Buys: Here’s What He’s Buying (Forbes)

Stocks continue to fall as a growing number of Wall Street pundits warn of rising recession risks (Forbes)

Sources

1/ https://Google.com/

2/ https://www.forbes.com/sites/sergeiklebnikov/2022/05/18/dow-falls-800-points-stock-market-selloff-continues-as-major-retailers-warn-of-rising-cost-pressures/

The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

ExBUlletin

to request, modification Contact us at Here or [email protected]