NEW YORK -- The Dow Jones Industrial Average sank more than 1,100 points and the S&P 500 had its biggest drop in nearly two years Wednesday, as big earnings misses by Target and other major retailers stoked investors' fears that surging inflation could cut deeply into corporate profits.
The Dow dropped 3.6%, while the Nasdaq fell 4.7%. The three indexes are on pace to extend a string of at least six weekly losses. Target lost a quarter of its value after reporting earnings that fell far short of analysts' forecasts. In a sign of the impact of inflation, particularly on shipping costs, Target said its operating margin for the first quarter was 5.3%. It had been expecting 8% or higher. The company also said consumers returned to more normal spending habits, switching away from TVs and appliances and buying more toys and travel-related items.
"These retailers are having to balance how much of the higher inflation to pass on to consumers versus eating it, so that goes into questions about profitability on the part of companies and that gets to some of these lingering valuation questions for the market," said Willie Delwiche, investment strategist at All Star Charts.
All told, more than 95% of stocks in the S&P 500 closed lower. Utilities also weighed down the index, though not nearly as much as the other 10 sectors, as investors shifted money to investments that are considered less risky. Stocks have been struggling to pull out of a slump over the last six weeks as concerns pile up for investors. Trading has been choppy on a daily basis and any data on retailers and consumers is being closely monitored by investors as they try to determine the impact from inflation and whether it will prompt a slowdown in spending. A bigger-than-expected hit to spending could signal more sluggish economic growth ahead.
LeonLeoParty 18wheelsofpain CPaige74 March 9 2020 the Dow fell 2,014 points, March 12, 2020, Dow then set another record by falling 2,352 Finally, on March 16 the Dow plummeted nearly 3,000 points So I think you mean
build back better is working like a charm.
Just rich people throwing their money around in the casino. Nothing to see here.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Forbes - 🏆 394. / 53 Read more »
Source: MarketWatch - 🏆 3. / 97 Read more »
Source: ABC7NY - 🏆 592. / 51 Read more »