If anyone wanted any confirmation that corporate earnings are always and only driven by the (very rigged) market, look no further than Wal-Mart, which moments ago did the inevitable: it just cut its sales forecast by nearly half, to just 2-3% from the prior forecast of 3-5%. From Bloomberg:
- WAL-MART SEES NEXT 3 YRS PROFITS GROWTH 'SOMEWHAT SLOWER'
- WAL-MART SEES FY16 SALES GORWTH 2-4%
- WAL-MART SEES NEXT 3 YRS SALES TO GROW 2.5%-3.5%
Also per Bloomberg, Wal-Mart Stores Inc. plans to dramatically scale back expansion of its U.S. supercenters, while investing more in e-commerce in an effort to pursue customers where they are shopping.
So instead of growth, what will WMT spend its money on? Why making its shareholders as rich as possible, while firing thousands and converting full-time workers to part-time status:
- WAL-MART SEES USING CASH ON DIVS, SHARE BUYBACKS
It's days like today when we wish Tim Geithner's hadn't "welcomed the recovery" back in August 2010.
and so... WMT stock tumbles to the lows...