Walmart Warns of Dark Economic Clouds Ahead

If you are looking for some economic good news, you won’t find it in Walmart for two reasons…the price of goods and there prediction about our economic future.

Stocks went even lower on Wall Street this week after trading on Tuesday when Walmart warned that inflation was negatively impacting the spending power of the American consumer. 

The S&P 500 was down 1.3%, which consumed any modest gains from the day prior. The Dow Jones Industrial Average was down 247 points, or 0.8%, at 31,744 and the Nasdaq Composite decreased to 2%.

Walmart shares dropped to 8.3% on the heels of the mega-retailer cutting its profit outlook for the second quarter and the full year. They said that rising prices for food and gas are forcing consumers to cut back on the more profitable items that are discretionary, like clothing. 

A profit warning in the middle of a quarter is rare and certainly a reason for real concern. It is a testimony to how the highest inflation in four decades is affecting the entire retail sector. 

This warning did not just affect Walmart stock. Other major chains fell after Walmart made its announcement. Target dropped 4.2%, Kohl’s dropped 8%, and Macy’s hit 6.5%.

All these combined caused investors to be deeply concerned about inflation’s impact on profits within companies. There is also deep concern about the effect it will have on American consumers. 

Americans Savings Being Spent on Higher Gas and Food

Fortunately, many built up savings during the pandemic, but those safety nets are now being ransacked by high prices on food and gas. 

It’s not all bad news. There were some major gains last week driven by better-than-expected reports on corporate profits. There were also falling yields in the bond market that helped to ease the pressure on stocks. This came after expectations for rate hikes by the Federal Reserve drove higher yields for most of the year. 

Experts are indicating that the central bank is expected to announce another rate hike of up to three-quarters of a percentage point this week. That is triple the usual amount. The central bank is committed to an aggressive campaign to deal with the 40-year high inflation rate. 

If this hike happens, it will put the Fed’s benchmark rate between 2.25% to 2.5%, which is the highest since 2018.

Bonds provided a mixed message for economists this week. The two-year Treasury yield rose to 3.04% from 3.02% late Monday. This tends to move with expectations for the Feds. But the 10-year yield fell to 2.79% from 2.82%. This typically influences mortgage rates. 

The companies that were the biggest hurdles for the benchmark S&P 500 index were technology stocks, retailers, and communication companies. Microsoft was down 3.5%, Amazon decreased to 5.3% and Facebook owner Meta Platforms slid to 4.5%.

These losses were strong enough to outweigh gains by health care and utility stocks. 

One of the areas that caught the attention of investors was the corporate earnings reports. Automaker General Motors fell 3.1% after the company indicated its second-quarter profit fell 40% from this time last year. This was caused by computer chip and parts shortages that kept factories from expected outputs. This also drove the sales down in the country by more than 15%.

From April to June of this year, General Motors made $1.67 billion. This is far below what they made in the same period last year, $2.79 billion. And the company could not deliver 95,000 vehicles during the quarter because it did not have the needed parts.

Things could get even worse because tech heavyweights Alphabet and Microsoft report their results after the closing bell, but Meta, Apple, and Amazon report later in the week.

We have to buckle up and prepare for more bad news. Welcome to Biden’s America.

China Takes Aim at the United States Over Taiwan

China is once again flexing its muscles globally and staring down the United States as well. Military officials in the communist nation have declared to their U.S. counterparts that the

Kamala Harris Ripped for Claiming Government’s Hurricane Ian Relief Will Prioritize ‘Communities of Color,’ as Death Toll, Damage Mount

Commenters on Twitter hammered Vice President Kamala Harris for her recent speech where she stated that federal relief for Hurricane Ian will prioritize people in "communities of color" and be

Putin’s Pain in Ukraine Brought Warning About Use of Nuclear Weapons

The world is becoming more and more aware of the struggle that Russia is having with its invasion of Ukraine. The United States has now warned Moscow about the "catastrophic


Sen. Joe Manchin Makes Sudden Reversal and Sen. Schumer Plows Ahead on Funding Bill

Sen. Joe Manchin from West Virginia just did a pretty drastic about-face on Tuesday, and it will likely help the Senate avoid a Friday night shut down.  His move enabled

Russia Grants Edward Snowden Citizenship

Russia continues in defiance of American interests. It granted citizenship this week to former American intelligence contractor Edward Snowden. He fled prosecution after revealing highly classified U.S. surveillance programs to

Senators Warn the United States is Incapable of Protecting American Innovations, Technology from Foreign Intel Agents

Several lawmakers recently voiced they feared the U.S. government is failing to protect academica, private businesses and students from foreign intelligence officers looking to steal technology and research and increase

North Korea: Denies Sending Arms to Russia Amid Its War on Ukraine

North Korea says it hasn't sent any weapons to Russia during its ongoing war against Ukraine and doesn't plan to do so, despite U.S. intelligence reports of weapons transfers. North

Some Democrats Are Questioning the Party’s ‘Risky’ Strategy of Supporting MAGA Republicans

Democrats had to face a tough question recently at a Democratic donors meeting. Some of their operatives asked about their tactics in preparing for the coming midterm elections in November.

Air Force Academy: Diversity Training Tells Cadets to Use Words that ‘Include All Genders​,’ Drop ‘Dad and Mom’

An inclusion and diversity training by the United States Air Force Academy in Colorado instructs cadets to refrain from saying things like “dad” and “mom” and use words that “include

Judge Blocks Execution in Alabama After Inmate Testifies They Lost His Paperwork

An inmate in Alabama scheduled for execution hand his death blocked by a federal judge because he claimed the state lost his paper work that requested an alternative to lethal

Americans Weigh in on Biden’s Handling of the Economy

Fox News recently interviewed people in San Francisco and New York and graded how well President Biden and his administration handled the economy. "Horrible. I don't even want to comment

Parler: Promises ‘Freedom from Censorship’ Amid Big Tech Midterm Preparations

Parler says it will be a hub for free speech leading up to the midterm elections amid ongoing efforts by tech companies to combat misinformation. The alternative social network has

Is Gavin Newsom Plotting a 2024 Run Against VP Kamala Harris?

Things are going to get pretty heated in the state of California, and we’re not talking about global warming. California Governor Gavin Newsom is planning a run for the presidency

Who Is Special Master in The Trump DOJ Case and What Will He Do?

Who is this “special master” that Judge Aileen Cannon appointed to be an independent arbiter in reviewing the documents seized from former President Donald Trump’s Mar-a-Lago estate in Florida? His

Ron DeSantis

President Biden, Administration Considering ‘Litigation’ Against Republican Governors over Illegal Migrants Sent to Democratic Cities

The Biden administration announced it would consider "litigation options" against Republican governors after illegal migrants were sent from border states to Democratic sanctuary cities. At a recent meeting, Homeland Security,

Supreme Court Reverses Decision in Religious Rights Case

The United States Supreme Court backtracked on a ruling that it made granting temporary permission for a New York Orthodox Jewish university to deny official recognition to an LGBTQ student

Trump Returns to Mar-a-Lago Home, Laments It’s Been ‘Ransacked’ by FBI Raid

Former President Donald Trump is back at his Palm Beach, Florida, Mar-a-Lago residence and is lamenting it had been "ransacked" by the FBI and would "never be the same" after

Senator Lindsey Graham Has Confidence the Public Will Get Behind His Abortion Legislation

Republican Senator Lindsey Graham from South Carolina has declared with confidence that he believes the public will support his 15-week federal abortion ban proposal. But he also expressed that it

U.S.- China Experts Warn of Possible ‘Bloody Affair for Both Sides’ If War Starts

Defense experts predict any conflict between China and the United States would be costly for both sides and would probably not produce a result in the U.S.'s favor.  "If you

Almost Half of the Nation’s Governors Send Biden a Letter on Student Loan Forgiveness

When just about half of all the governors in the nation sign a letter to the president, it’s probably significant. Twenty-two GOP governors did just that.  In a letter to

“Humanitarian Crisis” in Martha’s Vineyard = Just 0.000025% of the Border Crisis

Martha's Vineyard Chamber of Commerce claimed that 50 migrants sent by Florida Governor Ron DeSantis had caused a "humanitarian crisis" — despite the number being dwarfed by the flood of

Former Twitter Security Chief Tells Senate There Are Foreign Agents in the Company

A former security chief for Twitter just testified to Congress and he revealed that the social media platform has foreign agents embedded in the organization. He also revealed that the

Sen. Ron Johnson Cites Religious Protection, Won’t Back Same-Sex Marriage Bill

Senator Ron Johnson, R-Wis., will no longer support the same-sex marriage bill that would codify the right to same-sex marriage and increase protection for interracial and LGBT couples, citing issues

Eagle Pass Requests Refrigerators to Store Migrant Bodies after Drownings Overwhelm Mortuaries

A massive surge in migrant drownings along the southern U.S. border has "overwhelmed local funeral homes and mortuaries in Eagle Pass, Texas. According to the agency's chief, the crisis has

Democratic Nominee Opposing Governor DeSantis is Making Promises He Can’t Keep

Is Democratic gubernatorial candidate Charlie Crist of Florida writing checks he can’t pay? He promised on Friday while a guest on “The View” that he would never impose a state