Instant View-S&P 500 tumbles 3% on Target, tightening concerns

　　div classBodysc17zpet90 cdBBJodivpReuters – Wall Streets stock indexes tumbled as much as 3 on Wednesday as a growth share rally reversed amid concerns about economic growth highlighted by a 26 plunge in Target Corp shares after the retailer became the latest victim of surging prices.p

　　pTargets firstquarter profit halved and the company warned of a bigger margin hit on rising fuel and freight costs. Its shares were on track for their biggest fall since the Black Monday crash on Oct. 19, 1987 Full Story and came a day after rival Walmart Inc WMT.N trimmed its profit forecast. pdivdivdiv classBodysc17zpet90 cdBBJodiv

　　pRising inflation, the conflict in Ukraine, prolonged supply chain snarls, pandemicrelated lockdowns in China and prospects of aggressive policy tightening by central banks have weighed on the markets recently. p

　　pMARKET REACTION:p

　　p STOCKS: Dow down 2.74, S&P 500 down 3.18, Nasdaq rose 0.368p

　　pCOMMENTS:p

　　pTIM GHRISKEY, SENIOR PORTFOLIO STRATEGIST, INGALLS & SNYDER, NEW YORKp

　　p“Its a rather extreme reaction, but it does point out that there are inflation pressures on retailers and there are spending shifts by consumers occurring at the same time.”p

　　p“Target losing a quarter of its market cap is a concern for a company that has a strong longterm track record.” p

　　p“Overall, when times get tough, when theres inflation in lots of categories especially in nondiscretionary categories, like gas for your car, the lower income consumers often get squeezed.”p

　　p“The consumer is getting squeezed but is not dead by any means. Investors are partially reacting to Targets big earnings miss and it shows not so much in terms of revenues where it missed was earnings, and that reflects inflationary pressures.”p

　　p“This is not a forgiving market, selling creates more selling. Buyers are demanding much lower prices to get pulled into investments. You‘ve had these wild swings both up and down. It’s hard to get investors involved given the volatility and the uncertain economic and geopolitical outlook.”p

　　p“Technicians would suggest that an S&P 500 bear market confirmation could bring in some buyers, so there may be some resistance. But the fundamentals will continue to deteriorate if there are more earnings announcements like weve gotten from Target today, showing that our worst fears about inflation and supply chain cost pressures.”p

　　p“We‘re used to big positive surprises. For now, the revenues are likely to remain intact, but if the earnings fall apart there’s potential downside to the market beyond the somewhat random definition of a bear market.” p

　　pCHUCK CARLSON, CHIEF EXECUTIVE OFFICER, HORIZON INVESTMENT SERVICES, HAMMOND, INDIANAp

　　p“I think its economic fears. You have got a host of retailers that are coming out with results that are not great, and that is one more indication of perhaps a slowdown in the economy.”p

　　p“I just wonder if people are starting to really get pinched by fuel costs – both businesses as well as consumers… When you are paying north of 5 for a gallon of gas, thats a hammer and thats a hammer on everybody.”p

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　　pp Compiled by the Global Finance & Markets Breaking News teamp

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