{"id":1479550,"date":"2022-05-18T12:44:38","date_gmt":"2022-05-18T16:44:38","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1479550"},"modified":"2022-05-18T12:44:39","modified_gmt":"2022-05-18T16:44:39","slug":"stocks-take-a-dive-after-disappointing-earnings-from-walmart-and-target-warnings-of-rising-cost-pressure","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/stocks-take-a-dive-after-disappointing-earnings-from-walmart-and-target-warnings-of-rising-cost-pressure\/","title":{"rendered":"Stocks Take a Dive After Disappointing Earnings From Walmart and Target, Warnings of Rising Cost Pressure"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fstocks-take-a-dive-after-disappointing-earnings-from-walmart-and-target-warnings-of-rising-cost-pressure%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1479550&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\">\n<div class=\"ArticleBody-articleBody\" id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\">\n<div class=\"group\">\n<p>U.S. stocks fell sharply on Wednesday after another major retailer warned of rising cost pressures, confirming the fears over inflation that have sent major benchmarks to big losses this year.<\/p>\n<p>The Dow Jones Industrial Average shed 848 points, or 2.6%, with the average set for its first loss in four days. S&#038;P 500 traded 3.1% lower, while the Nasdaq Composite slipped 3.8%.<\/p>\n<p>Markets returned to heavy selling after two back-to-back quarterly reports from Target and Walmart built on investor fears of rising inflation. It&#8217;s the fifth Dow decline of more than 800 points this year, which all occurred as the stock sell-off intensified within the last one month.<\/p>\n<p>Target shares tumbled more than 24% Wednesday after the retailer <a href=\"https:\/\/www.cnbc.com\/2022\/05\/18\/target-tgt-q1-2022-earnings.html\">reported first-quarter earnings that were much lower than Wall Street estimated<\/a> because of higher costs for fuel and compensation. The retailer also saw lower-than-expected sales for discretionary merchandise like TVs.<\/p>\n<p>Target&#8217;s report comes right after Walmart on Tuesday posted earnings that fell short of expectations as it too <a href=\"https:\/\/www.cnbc.com\/2022\/05\/17\/walmart-wmt-earnings-q1-2023.html\">cited higher fuel and labor costs<\/a>. Walmart shares ended Tuesday lower by 11%. They were down another 6% on Wednesday.<\/p>\n<p>&#8220;The consumer is challenged,&#8221; said Megan Horneman, chief investment officer at Verdence Capital Advisors. &#8220;We started to see at the end of the year that consumers were turning to credit cards to pay for the rise in food prices, rise in energy prices, and that&#8217;s actually gotten much worse. &#8230; This is going to hurt those bellwether retail places and Walmart tends to be one of them.&#8221;<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"ChartSlate-chartSlateContainer\">\n<h3>Loading chart&#8230;<\/h3>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Other retailers took a hit on the back of Target&#8217;s quarterly earnings miss. Best Buy&#8217;s stock price dropped more than 8%, Dollar General&#8217;s fell more than 11%, and Dollar Tree&#8217;s declined more than 17%. Shares of Macy&#8217;s dropped 9%, while shares of Kohl&#8217;s fell more than 10%.<\/p>\n<p>Lowe&#8217;s shares fell more than 4% after <a href=\"https:\/\/www.cnbc.com\/2022\/05\/18\/lowes-low-earnings-q1-2022.html\">missing sales expectations in its first quarter report<\/a> as shoppers bought fewer supplies for outdoor projects.<\/p>\n<p>&#8220;Any company that relies on households and discretionary purchases will likely suffer this quarter because a lot of discretionary income has been funneled to food and energy prices,&#8221; said Jack Ablin, founding partner of Cresset Capital.<\/p>\n<p>TJ Maxx-parent TJX Companies bucked the overall negative trend, with shares surging 7% after the retailer reported an earnings beat.<\/p>\n<p>Wednesday&#8217;s market reversal comes after shares had been mounting a comeback off the year&#8217;s lows. On <a href=\"https:\/\/www.cnbc.com\/2022\/05\/16\/stock-market-futures-open-to-close-news.html\">Tuesday<\/a>, the Dow rose 431 points, or 1.3%, while the S&#038;P 500 gained 2% and the Nasdaq Composite climbed nearly 2.8%.<\/p>\n<p>The Dow has declined for seven straight weeks, but stocks had stabilized over the previous three trading sessions. Last week, the S&#038;P 500 fell to the brink of a bear market \u2014 or 20% below its record high \u2014 but the index has recovered slightly since then.<\/p>\n<p>Despite the recent comeback, the S&#038;P 500 is down 16% for the year, while the Nasdaq Composite is off by 25%.<\/p>\n<p>Gas prices have steadily marched higher, contributing to inflationary pressures seen across the economy. The national average for a gallon of regular gasoline hit a record $4.567 on Wednesday, according to AAA. Prices are 48 cents more than a month ago, and $1.52 more than what consumers paid last year.<\/p>\n<p>Every state is now averaging above $4 per gallon, with some states paying much more. In California, the statewide average has crossed $6.<\/p>\n<p>The yield on the benchmark 10-year Treasury note briefly topped 3% on Wednesday morning as investors weighed the prospects of tighter monetary policy.<\/p>\n<p>Stocks and other risk assets have been pressured by inflation and the Federal Reserve&#8217;s attempt to tamp down price increases through rate hikes, which have led to concerns about a potential recession. Fed Chair Jerome Powell said at a Wall Street Journal conference on Tuesday that &#8220;<a href=\"https:\/\/www.cnbc.com\/2022\/05\/17\/powell-says-the-fed-will-not-hesitate-to-keep-raising-rates-until-inflation-comes-down.html\">there won&#8217;t be any hesitation<\/a>&#8221; about raising rates until inflation is under control.<\/p>\n<p><em>\u2014 CNBC&#8217;s Pippa Stevens contributed to this report.<\/em><\/p>\n<\/div>\n<\/div>\n<div class=\"WatchLiveRightRail-inline WatchLiveRightRail-container\" id=\"RegularArticle-WatchLiveRightRail-7\" data-test=\"watchLiveRightRail-4\" data-analytics=\"RegularArticle-watchLiveRightRail-7-4\">\n<div class=\"WatchLiveRightRail-contents\"><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButton\">WATCH LIVE<img decoding=\"async\" src=\"denied:data:image\/svg+xml;base64,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\" class=\"WatchLiveRightRail-logo\" alt=\"logo\" \/><\/a><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButtonMobile\">WATCH IN THE APP<\/a><\/div>\n<\/div>\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-12 PageBuilder-col PageBuilder-article\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>U.S. stocks fell sharply on Wednesday after another major retailer warned of rising cost pressures, confirming the fears over inflation that have sent major benchmarks to<\/p>\n","protected":false},"author":498,"featured_media":2315279,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1479550","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1479550","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/498"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1479550"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1479550\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1479550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1479550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1479550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}