NEW YORK, June 7 — Wall Street stocks fell early today as the World Bank slashed its global growth outlook and Target warned of lower profits in the current quarter.
The World Bank cut its growth estimate for the global economy to 2.9 per cent, 1.2 percentage points below the January forecast, in the wake of Russian invasion of Ukraine, which has sent grain and oil prices soaring.
Meanwhile, big-box chain Target trimmed its second-quarter operating profit margin to around two per cent, from the prior projection of 5.3 per cent.
The retailer said it was cancelling orders and undertaking heavy markdowns due to excess inventory some of which arrived late because of supply chain problems. Shares fell 5.3 per cent.
Other retailers also tumbled due to the concern that Target’s price cuts will lead to heavy promotional activity, hindering profits.
About 20 minutes into trading, the Dow Jones Industrial Average was down 0.6 per cent at 32,717.28.
The broad-based S&P 500 fell 0.5 per cent to 4,100.91, while the tech-rich Nasdaq Composite Index also declined 0.5 per cent to 12,004.58.
Among retailers, Kohl’s was a rare gainer, piling on 9.0 per cent after confirming it is in talks to be acquired by Franchise Group. — AFP
