Target, Walmart’s inflation warning bad omen for stocks, economy

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Target, Walmart’s inflation warning bad omen for stocks, economy
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Walmart and Target, solid barometers of consumer spending, didn't mince words on sky-high inflation.

Target shares, on Wednesday, dropped 25% the most since 1987 contributing to the Dow Jones Industrial Average’s 1,164.52 point skid, pushing the benchmark to its lowest level since March 2021.

"Growth was challenged by unusually high costs, resulting in profitability well below what we expected to be and where we expect to operate overtime," said Target CEO Brian Cornell on the company’s earnings call Wednesday. Adjusted earnings fell 40.7% compared to the year-ago period to $2.10 per share.The S&P 500 is also lingering at the lowest since March 2021, as tracked by Dow Jones Market Data Group.

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