Costco Just Raised the Risk of Recession
It's been a tough couple of weeks on Wall Street, and the downward pressure on stocks continued Friday morning. With investors worldwide still reeling from the Federal Reserve's increasingly stubborn emphasis on fighting inflation even at the cost of economic growth, market indexes have seen the bear market worsen. As of 9 a.m. ET, stock index futures on the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) were down between 1% and 1.5%, starting to approach levels seen during the extreme bearishness that prevailed in June.
Consumer activity makes up much of the U.S. economy, and among retailers, Costco Wholesale (NASDAQ: COST) has managed to survive all sorts of economic conditions. The warehouse retail giant reported financial results late Thursday that showed its resiliency, but even some of the pressures that Costco is facing raised fears about whether other companies would be able to survive increasingly difficult conditions in the retail industry and beyond.
Shares of Costco were down about 2% in premarket trading, which wasn't that far from the declines in the broader market. The company concluded its 2022 fiscal year on Aug. 28, and its financial results from the period included a combination of good news and signs of more difficult conditions ahead.
Source Fool.com
