UNFI - Stocks Lower on Profit Warnings
Stock futures fell Tuesday after Target issued a warning about its current quarter's profits, stoking fears of a potential recession.
Futures for the Dow Jones Industrials tumbled 226 points, or 0.7%, Tuesday to 32,686.
Futures for the S&P 500 faded 34 points, or 0.8%, to 4,086.50.
Futures for the NASDAQ Composite index plummeted 142.75 points, or 1.1%, to 12,462.25.
Target shares fell 9% 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 4.3%.
Investors are still following what is a lighter week in company earnings. Shares of United Natural Foods were rising in premarket trading after the wholesale company beat expectations for its fiscal third quarter. However, food stock J.M. Smucker was under pressure after its quarterly report.
In Japan, the Nikkei 225 edged up 0.1% Tuesday. In Hong Kong, the Hang Seng fell 0.6%
Oil prices dipped 12 cents to $118.38 U.S. a barrel.
Gold prices gained $5.80 to $1,849.50 U.S. an ounce.