Bath & Body Works said quarterly sales edged lower after the pandemic stimulus fueled sales increase waned and guided lower earnings in the current quarter and for the full-year.

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Volatile indexes searched for direction and lacked support during the three attempts to close higher. Indexes swung several times up and down after crude oil prices remained elevated and bond yields traded in tight trading range.

Children's Place reported a sharp decline in sales after record low temperatures and thin wallets kept consumers away. The retailer lowered annual sales outlook and plans to close 50 stores in the year.

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U.S. stocks opened lower facing another wave of selloff on the worries that elevated inflation is hurting corporate earnings. Kohl's earnings plunged 90% and Cisco guided lower sales in the current quarter.

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Asian Markets Tumble Following U.S. Rout

May 19, 2022
Arjun Pandit
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.

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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.

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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.

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U.S. indexes turned negative after Target Corp reported lower earnings on rising costs and supply disruptions. Target plunged 25% and stocks in the retail sector plunged.

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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%.

U.S. stocks rebounded from the lows after steep losses in the last six weeks. Tech stocks led the advance and investors searched for bargains in tech and transportations sectors.

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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.

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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%.

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