SJM - Stocks Fall on Profit Warnings

Stocks fell on Tuesday after Target issued a warning about its current quarter's profits, stoking fears of a potential recession.

The Dow Jones Industrials subtracted 216.43 points to 32,699.35.

The S&P 500 ditched 26.17 points to 4,095.26.

The NASDAQ Composite fell 82.48 points to 11,978.89.

Target shares fell more than 6% after the retailer announced plans to work down excess inventory. The company said it will implement additional markdowns to products and cancel some orders. Target also lowered its operating margins guidance for the quarter. Walmart shares followed Target lower, sliding 2.5%.

Major retailers have delivered mixed results and outlooks in recent weeks, adding to stock market volatility as investors try to determine if they signal the start of a potential recession or a rapid change in consumer spending.

Tech stocks were broadly lower, with shares of Amazon falling more than 3%. In deal news, Kohl's jumped nearly 9% after the retailer said it was in exclusive negotiations with Franchise Group about a potential takeover.

Sentiment was largely muted Monday, with no U.S. economic data releases and a quiet Federal Reserve in its blackout period. There were also no earnings reports for major companies.

Investors are still following what is a lighter week in company earnings. Shares of United Natural Foods jumped 9% after the wholesale company beat expectations for its fiscal third quarter. Food stock J.M. Smucker rose slightly after its quarterly report.

Treasury prices recovered, lowering yields to 2.99% from Monday's 3.05%. Treasury prices and yields move in opposite directions.

Oil prices regained $1.50 to $120.00 U.S. a barrel.

Gold prices was hoisted $9.30 to $1,853 U.S. an ounce.