The major US indices are all closing sharply lower as concerns about the economy and inflation way on values.
Target announced earnings before the open and they came in much weaker than expected as higher costs are starting to eat into the margins. The stock is ending the day down -$53.55 or -24.87%. Ouch.
If transportation/employee costs are hurting Target, a company like Amazon must be really feeling the pinch. It’s shares are down $-164 today or -7.12%.
A look at the final numbers are showing:
Dow industrial average down -1164.52 points or -3.57% at 31490.06
S&P index down -165.17 points or 4.04% at 3923.67
NASDAQ down -566.36 points or -4.73% at 11418.16
Russell 2000 down -65.45 points or -3.56% at 1774.84.
None of the Dow 30 stocks closed positive on the day:
Procter & Gamble, -6.15%
Verizon was the best performer at -0.14%
Other big losers on the day included:
Dollar Tree, -14.42%
Game Stop -8.94%
All sectors of the S&P are lower today. Consumer staples (6.6%) and consumer discretionary (-6.4%) were the worst performing sectors followed by technology (-4.7%). Utilities were the best of the worst (-1.0%).
After the close, Cisco Systems announce their earnings and revenues for the current quarter. Earnings-per-share came in at $0.87 vs. 86% estimate. Revenues came in at $12.84 billion which was lower than the $13.34 billion estimate. The stock is trading down over 11% in after-hours trading.
“When sorrows come, they come not single spies, but in battalions” – Claudius in Hamlet
PS. The heatmap for the major stocks. Clearly TJ Maxx will have a crappy quarter next quarter….