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COMING UP:Share Opener Variant 2

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Transcript

00:00:01
>> Wall Street tumbled back into negative territory for the year. In the midst of another painful selloff Tuesday, the Dow Jones nosedived 551 points. As worries about the retail sector on the eve of that group's most important time of the year added to a list of things putting investors on edge.
00:00:20
And it wasn't just the stock market that was hit hard, oil prices dropped to their lowest in more than a year. Target set off alarm bells missing third quarter profit forecasts. The results suggest Wall Street may have been too confident going into the earnings season for the retail sector, says the Refinitiv Director of Consumer Research, Jharonne Martis.
00:00:42
>> Market expectations going into the third quarter earnings were significantly high, especially because the consumer had been so engaged, and consumer spending was so high. Consumer confidence is up, unemployment is low, and as a result, the market is expecting that at least, the strong retailers will post really good metrics across the board.
00:01:01
It's important to note that for a retailer right now to stay competitive and compete with the likes of Amazon, they have to invest significantly in innovation and in technology. And those expenditures are not cheap.>> That investment in Target's online business coupled with deeper discounts to fight off competition and higher wages combined to take a big bite out of profit.
00:01:22
The miss such a surprise to investors, the stock tumbled 10%. It's worst one day performance in nearly two years. Worries surrounding the most successful consumer product on the planet, the Apple iPhone intensified the market's gloom. And the once favorite FANG stocks, Facebook, Amazon, Netflix and Google parent Alphabet, continue to crater.
00:01:46
Those four stocks combined have lost over $750 billion in market wealth since their record highs. Add to all of that, persistent concerns about higher interest rates and the impact of a trade war on the global economy giving investors plenty of reason to sell. Even at a time of the year that's historically strong for the stock market.
00:02:09
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