Chart of the week: Walmart profit warning is a warning sign
Retail giant Walmart issued another profit warning last week. And the underlying reasons point to a stagnant US economy.
Walmart pointed to a change in the spending pattern of American consumers. As a result of the continuing rise in food prices, Americans have no money left for other purchases. In order to get rid of the increasing stock, Walmart has to lower its prices considerably, which results in lower profits.