Why Target and Lowe's Cast a Shadow Over the Consumer Economy Wednesday

Stock markets moved sharply higher on Tuesday, but they weren't able to sustain that upward momentum heading into Wednesday morning's trading. Premarket measures of the market indicated the likelihood of a lower open when the regular session starts. As of 8:45 a.m. ET, futures on the Dow Jones Industrial Average (DJINDICES: ^DJI) were down 163 points to 32,418. S&P 500 (SNPINDEX: ^GSPC) futures had dropped 29 points to 4,056, while Nasdaq Composite (NASDAQINDEX: ^IXIC) futures were lower by 132 points to 12,429.

Earnings week for big-box retail giants continued on Wednesday, and the news was generally poor. Target (NYSE: TGT) delivered the most uncomfortable surprise for shareholders, but home improvement company Lowe's (NYSE: LOW) wasn't able to provide much reassurance. Read on for the details and what it could mean for the consumer economy more broadly.

Shares of Target plunged almost 25% in premarket trading on Wednesday morning. The department store retailer wasn't able to sustain its success from last year, and investors were surprised at just how much its bottom line shrank.

Source Fool.com