- Walmart, Target and other retailers are warning of shifts in consumer spending and in the economy.
- Consumer discretionary spending’s slowing due to inflation, which could lead to fewer jobs and inventory gluts.
- U.S. stock indices are already down double digits this year, but there could be more downside if inflation stays hot and the economy slows further.
Already-released earnings warnings from two retail stalwarts and others expected this week offer clues into whether a recession is in the cards, how fast it could come and what this could mean for the rest of the year, analysts said.
Walmart and Target, back-to-back last week, reported lower-than-expected earnings due to a surprisingly quick shift in consumer spending and higher costs, including transportation and overstaffing.
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