Asian markets tumbled following the broad U.S. market selloff. Japan recorded its ninth monthly trade deficit in a row on rising energy prices. In Hong Kong, Ten Cents dropped after earnings were cut in half. In India, tech stocks led the decliners. Australian retail stocks led the losers.
Cisco Systems reported flat quarterly sales and guided sales decline in the current quarter ending in July. The networking company returned $1.8 billion to shareholders in the fiscal third quarter.
CSCO
CSCO
U.S. indexes dropped sharply on the growing worries that financially strapped consumers, supply disrupted companies, and elevated energy prices are slowing the economy faster than anticipated by investors.
European markets declined more than 1% after the U.K. inflation accelerated in April to the fastest pace in nearly four decades. Elevated energy prices and supply chain disruptions also weighed on the market sentiment.
Lowe's Companies reported weaker than expected sales and earnings after comparable sales fell in the quarter on tough comparison. Customers also searched for energy efficient products.
LOW
LOW
Target Corp earnings plunged more than 50% after the company struggled with inventories mismatched and rising operating costs. The company also guided weak operating margin in the second quarter and for the rest of the year.
TGT
TGT
Asian markets closed mixed after Japan's economy contracted less than expected in the first quarter and industrial production rose. Resource and energy stocks lifted the Australian index 1%.
Walmart said U.S. customer transactions were flat but spent 3% more at stores. Sam's Club sales and comparable sales surged as more members signed up.
WMT
WMT
Home Depot said March quarter sales increased 3.8% and net income rose 2.1% after comparable sales at the U.S. locations rose 1.7%. The transaction size jumped 11% but the number of transactions fell 8.2%.
HD
HD
U.S. market indexes gained after three days of lackluster trading. Stocks in technology, resource, and consumer sectors drove the advance. Crude oil and U.S. benchmark bond yields increased. Home Depot and Walmart reported diverging quarterly results.
In choppy trading market indexes lacked direction as stock market battled inflation worries, crude oil advanced on higher demand expectations, and the bond market forecasted rising rates.