Target Profit Down 52 Percent, Dow Plunges Again – Opinion

It just keeps getting worse for the Biden economy: Retail giant Target’s profits plunged a staggering 52 percent for the first quarter of the year, while the Dow Jones continued its freefall as it fell over 1,100 points in today’s trading.

This comes after Walmart’s stock (WMT) tanked Tuesday, suffering its worst decline in 35 years. Target (TGT was down 24.93, with Walmart’s stock falling 6.79 percent.

Is this really happening? It’s not that complicated—rising fuel and freight costs due to Joe’s inflation have drastically cut into profit margins.

From Reuters

“We have a lot of work ahead of us to restore profitability to the level where we expect to operate over time,” Target Chief Executive Brian Cornell said on a post-earnings call.

According to the company, costs will increase by $1 billion more than anticipated.

Companies have seen their costs rise due to the Ukraine crisis and pandemic disruptions in shipping. Target executives stated that the problem with supply chains would continue until 2023.

A second factor that is affecting retailers are the sceptical consumers who put off major purchases, such as televisions, bikes and kitchen appliances, compared with previous years. I’m sure as heck not buying a new refrigerator any time soon, are you? CNN

Target shoppers are concerned about “the high and persistent inflation they’ve been experiencing, particularly in food and energy,” Cornell added during a conference call with analysts.

The Dow dropped more than 1,100 points on its worst day since 2020. It ended the day 14% lower than the start of 2019. News like this can only heighten the worry over the dreaded “R” word, as The Wall Street Journal points out:

Wall Street is now pondering the possibility that the global economic system could soon be in recession. Though the debate is far from settled, it has rattled stocks and other risky assets throughout the year, with the latest data illustrating the degree to which inflation has hit U.S. consumers.

Joe Biden is Joe Biden likely to come to our rescue? Doesn’t sound like it. As my colleague Bonchie points out, Biden’s newly-minted Press Secretary Karine Jean-Pierre says of the administration’s attention to the stock market: “We do not—that’s not something we keep an eye on every day.”


These terrible numbers can make it difficult for people to be more attentive. you, The voters. Inflation doesn’t just slam the stock market, it affects our everyday lives, from food costs to nasty gas pump surprises to vacations. These are the grim facts:

Inflation in the US decreased to 8.3% from March’s record 8.5%, which was 41 years ago. This is less than what market analysts had predicted at 8.1%. Energy prices increased 30.3%, below 32% in March namely gasoline (43.6% vs 48%) while fuel oil increased more (80.5% vs 70.1%)… Despite the slowdown in April which suggests that inflation has probably peaked, the inflation is unlikely to fall to pre-pandemic levels any time soon and will remain above the Fed’s 2% target for a long time as supply disruptions persist and energy and food prices remain elevated.

Biden may blame Ukraine or supply chain problems, but it doesn’t matter. When you’re the captain of the ship, you are responsible when it crashes.

November 2024 can’t come fast enough.

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