Stocks Tumble on Wal-Mart Warning

[NNN0LHI]

http://ap.tbo.com/ap/breaking/MGBFCKADN8E.html

NEW YORK (AP) - Stocks tumbled sharply Thursday as a second-quarter profit warning from Wal-Mart Stores Inc. overshadowed strong economic news and a sharp drop in oil prices.

Investors' fears of an economic slowdown were heightened after Wal-Mart missed Wall Street's profit expectations for the quarter and, more importantly, said high gasoline prices have hurt customer spending and could affect the company's second-quarter results.

That put a damper on a very positive Commerce Department report, which showed a 1.4 percent increase in retail sales, the best gain in six months. Analysts had been expecting a rise of 0.8 percent.

Combined with oil falling below $49 per barrel, the balance of news could be swinging in the market's favor, but investors' pessimism kept stocks vacillating in and out of negative territory.

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[jayfish]

1. Sharp Drop[ In Oil Prices Huh?

Why the fvck did gas go up by .30 last night then?

Jay

[wicket]

4. oil prices

Ever notice how when the price of oil drops sharply it takes forever for us to feel it at the pump- but when the oil price jumps, we immediately feel the squeeze at the pump? GRRRRRRR....

[lonestarnot]

8. Refineries

;-)

[notadmblnd]

9. and when the price does go down

it never goes down below the previous high.

[Danmel]

5. Tell me about it

I paid $2.29-9 today for regular. I don't see anything resembling a decline in gas prices.

[pnutchuck]

10. I'm paying 2.49 for regular!!! and that's the cheapest in town.. nt

[SmokingJacket]

2. Our economy now hinges on WALMART???

Now I'm worried.

WalMart can't -- CAN'T -- continue being so wildly profitable forever. Either overseas workers are going to want more money (weak dollar) or Americans are going to start buying less, or other companies are going to be able to compete with them.

They're at an unsustainable sweet spot right now, IMHO.

(and it is humble!);-)

[aneerkoinos]

12. Good observation

Quite likely when the poor majority cannot even afford Wall-Mart crap anymore, it's the beginning of end.

When WM goes bust: "Oh my beautifull mind", goes the Queen, "let them shop at luxury boutiques!"

Next day Bastille...

[BurgherHoldtheLies]

3. I know they say boycotts don't work, but....

Walmart stock peaked shortly after the Nov election but has been steadily going downhill and missing/readjusting expectations since Buyblue etc. have cropped up. Coincidence? :shrug:

[Rainscents]

6. Maybe boyscott is finally making a dent?

[Zorra]

18. Yes, the boycott is making a dent. Every penny we don't give to them

makes a dent.

An if people continue to spread the word to boycott Wal-Mart, we will make a hole.

Wal-Mart is the largest corporate contributor to the republican party.

Boycotting them is patriotic.

[no_to_war_economy]

7. damn commies .. its their fault!

[catmandu57]

11. I think it's more of a matter of their customers

being mostly low wage earners and feeling the gasoline pinch more. With a limited ammount of money to spend and the choice coming down to buying gasoline to get to work, or, buying some cheap crap from mal-wart, getting to work is going to win.

[Indiana_Dem]

19. But in an msn news report I read where Target's sales went up.

I mean I don't think Target is any better but maybe people are choosing to go there instead of Walmart, obviously. The only major store like Walmart in our town is Walmart. They drove our local KMart out of business. I just don't go to Walmart unless I have to, since it's the granddaddy of them all. Basically, the lesser of all the evils. I either try to buy local or to the ones who contribute the least to the Republican party. I wish we had a Costco but we don't.

I think it's a combination of high gas prices, low-incomers not being able to buy as much, and we who choose not to shop at Walmart. Sure enough, I think those factors could make a dent altogether.

They probably still made their profits though. Just not at the level they wanted.

[Wright Patman]

13. Gas is $1.88 per gallon here

and it's a good thing it's still that low because people are poor and have to drive at least 40 miles round-trip to the nearest metro area.

[Az_lefty]

16. Where are you at that gas is that cheap???

[Wright Patman]

17. East Texas

eom

[Ilsa]

14. It's so simple:

Poorer people who shop at WalMart have less money due to their gas crunch, etc. Wealthier people don't feel the pinch as badly and they continue to shop at Neiman's, Nordstrom's, etc.

Well, at least that's my initial take on it.

[Deja Q]

15. OMG, malwart's profit dipped and the WORLD IS GOING TO CRUMBLE!

OH NO!!!!!!!!!!!!!!!!!!

It's like Mr. Bill on dope, I swear...

And oil dropped to $49/barrel? HOW?! It was $55. Then got to $51. Then got up to $53 because somebody sneezed. Now it's $49. I should see if gas is still $2.15... At $49/barrel, it should be down to about $1.79.