(Photo: Getty Images)
MARKET REVIEW. Wall Street had another dark session on Wednesday, which was the worst since 2020 for indices, triggered the next day by negative announcements from major retailers, which led to fears about food and corporate profits.
To (re) review market news
Stock market indicators at the close
In Toronto, a S&P/TSX fell 389.63 points (-1.90%) to 20,101.38 points.
In New York, a S&P500 fell 165.17 points (-4.04%) to 3,923.68 points.
and Nasdaq fell 566.37 points (-4.73%) to 11,418.15 points.
and DOW fell 1,164.52 points (-3.57%) to 31,490.07 points.
and true it fell US $ 0.0053 (-0.6824%) to US $ 0.7755.
and oil it fell US $ 3.11 (-2.77%) to US $ 109.29.
gold it decreased by US$4.40 (-0.24%) to US$1,814.50.
and bitcoin decreased by US$926.57 (-3.08%) to US$29,144.16.
His story
Big drop in supermarket shares Targets (TGT) (-24.87% to US $ 161.73) – a rare increase in value in the retail industry – attracted the attention of investors as it showed how rising prices are starting to weigh on consumption and corporate profits.
The chain blamed half of its quarterly profit and its boss, Brian Cornell, complained about the cost increase. He warned that sales will fall in 2023. Oil and cargo jumped by US $ 1 billion for the group.
“We got off to a slow start in this segment because Target gave us an opportunity to raise money,” said LBBW’s Karl Haeling.
“Then the stock market became self-confident and as the indices fell, the market became concerned about future earnings, operating margins, economic slowdown and so on,” he said.
The fall of Target, a chain of department stores, is related to the disappointing results of Walmart (WMT) (-6.84% to US$122.36), the first discount retailer to become more popular among low-income earners, which worried investors.
“People are slowly buying luxury goods and are turning to clean goods,” Gregori Volokhine said, quoting chain store managers.
“Low-income is Walmart, middle-income is people who shop at Target, so they’re going up the pyramid,” Meeschaert said of how inflation costs money.
“The facts are not good for us to eat, we have to face them,” he added.
Some nations have paid the price, Costco (COST)trader, dropped 12.45% to US$ 429.40, Best Buy (BBY) The electronics giant also lost about 11%, while dollar stores, Dollar Rate (DLTR)has changed to +14.42% week.
Eleven sectors of the S&P 500 plunged into the red starting with non-essential goods and services (-6.60%), the fall was not seen, and information technology (-4.74%).
Big names in tech have gone under, like Amazon (AMZN) (-7.16% to US$2,142.25), Apple (AAPL) (-5.64% to US$140.82), Netflix (NTFX) (-7.02% to US $177.19).
Give the money
After seven weeks of losses and this new brutal fall, the Nasdaq, which has many modern instruments, returned to its level of November 2020. The Dow Jones flagship index and the S & P 500, which mainly represents the American market, are low more from March 2021.
Today’s selloff affects the company’s ability to raise capital. We asked ourselves a question, well we had an answer in terms of results “from Target in particular, explained Quincy Krosby, chief analyst of LPL Financial.
“Of course, consumers continue to spend, but many of the major retailers are unable to improve operating costs and prices driven by revenue streams,” he said.
According to him, “fear is growing in the market from time to time and it is increasing as we begin to reduce the deep recession”.
Yields on 10-year Treasury bills declined to reflect purchases of safe-haven bonds, whose prices rise as their yields fall. They stood at 2.87% against 2.99% before the market opened.
“Looks like we haven’t reached the bottom,” complained Karl Haeling. “It’s a little disappointing to see that the volatile VIX index hasn’t exploded, as if the panic, the big panic, isn’t there,” he said. The barometer, which is known as “fear of fear”, stopped at 30, falling below its level at the beginning of May.
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