The broader markets were pulled down on Wednesday by a series of poor quarterly earnings from some large retailers. Investors also analyzed words from Federal Reserve officials reiterating their commitment to keeping inflation under control.
The S&P 500 dropped by 4.04%, its lowest level since June 2020. The Nasdaq Composite plunged 4.73%, while the Dow dropped more than 1,100 points or 3.57%.
SAME STORY, DIFFERENT COMPANY
Just like Walmart, Target (TGT) disappointed Wall Street with its first-quarter profits and full-year profit projections, with increasing costs expected to continue to eat into the retailer’s margins. In pre-market trade, shares were down more than 20%.
Earnings per share: $2.19 per share vs. $3.06 per share estimate
Same-Store Growth: 3.30% vs. 1.17% estimated
Revenue: $25.17 billion vs. $24.47 billion estimate
Target’s full-year operating income margin rate is now expected to be “in a range centered around 6%,” according to the company’s earnings release. This compares to a previous forecast of an operating income margin of at least 8% this year.
At Closing, TGT finished lower by 24.93% to $161.61 per share.
ANOTHER COIN FALLS
Miami Mayor Francis Suarez believes MiamiCoin, a cryptocurrency created in June, has the potential to replace taxes as a source of revenue for the city. However, “I don’t know whether it’s going to work,” he said five months later, according to the Miami Herald.
Why is he going back on his words? Since its high in September, MiamiCoin has lost more than 95% of its value. Meanwhile, NYCCoin, its younger twin, is down 80%.
What is the purpose of these coins?
- Investors purchase tokens in order to bid on a city’s coin.
- The highest bidder gets 70% of their money in MiamiCoin, with the remaining 30% going to the city’s digital wallet.
According to CityCoin, Miami’s and New York’s wallets held $25 million and $31 million in January, respectively. However, anticipated uses for the money, such as establishing a universal basic income or assisting small enterprises, have yet to materialize. Investors become less willing to bet on unproven blockchain projects as markets grow pessimistic and some utopian cryptos, such as terra, crash.