Stock

Walmart, Target warnings could mean trouble for economy, stock market

Walmart, Target warnings could mean trouble for economy, stock market

  • Walmart, Target and other retailers are warning of shifts in consumer spending and in the economy.
  • Consumer discretionary spending’s slowing due to inflation, which could lead to fewer jobs and inventory gluts.
  • U.S. stock indices are already down double digits this year, but there could be more downside if inflation stays hot and the economy slows further.

Already-released earnings warnings from two retail stalwarts and others expected this week offer clues into whether a recession is in the cards, how fast it could come and what this could mean for the rest of the year, analysts said. 

Walmart and Target, back-to-back last week, reported lower-than-expected earnings due to a surprisingly quick shift in consumer spending and higher costs, including transportation and overstaffing.  

Help Terms of Service Privacy Policy Your California Privacy Rights / Privacy Policy Our Ethical Principles Site Map

© 2022 USA TODAY, a division of Gannett Satellite Information Network, LLC.


Source link

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button