NEW YORK: Wall Street stocks fell early Tuesday 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 percent, 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 percent, from the prior projection of 5.3 percent.
The retailer said it was canceling orders and undertaking heavy markdowns due to excess inventory some of which arrived late because of supply chain problems. Shares fell 5.3 percent.
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 percent at 32,717.28.
The broad-based S&P 500 fell 0.5 percent to 4,100.91, while the tech-rich Nasdaq Composite Index also declined 0.5 percent to 12,004.58.
Among retailers, Kohl’s was a rare gainer, piling on 9.0 percent after confirming it is in talks to be acquired by Franchise Group.