Here’s Why Ethereum (ETH) Price Can Plunge More Ahead

Ethereum, the world’s second largest cryptocurrency has been trading under major selling pressure. ETH prices have dropped by 40% over the past 30 days. However, expert suggests that this drop may continue further.

July/August can be worst months

Daniel Cheung, Co founder of Pangea Fund Management in a Twitter thread mentioned a massive short opportunity for Ethereum at $1,200 in the next 2 months. He suggests that the market hasn’t yet seen the capitulation yet. It added that July and August are lined up to be the worst months ahead.The fund manager highlighted that currently, the market is in the Macro trade regime. The Bitcoin and Ethereum trends suggest that the crypto market has been trading very sensitively to inflation.

The recent selling pressure has led the Global crypto market cap to plunge by another 5% over the past day. It now stands at $902 billion. The digital asset market recorded its all time high (ATH) of $3 trillion in November 2021.

Ethereum price can drop by 40%

The world’s second largest crypto is still likely to be levered and liquid bet on Nasdaq and that too for the next 2 months. He believes that Nasdaq still has a lot of room to fail ahead. It is still down by 30% from the recent ATH with a prior drawdown. Cheung added that a further 20% downside is still in the frame for QQQ and 40% for Ethereum.

ETH prices are down by more than 9% in the last 24 hours. It’s trading at an average price of $1,111, at the press time. Its 24 hours trading volume is up by 7% to stand at $14.6 billion. However, it is still down by 77% from its all time high.

By Ashish Kumar

Critics by Lapin

Ethereum price analysis is bearish today as we have seen more downside reached over the last 24 hours with a steady downside momentum. Therefore, we expect ETH/USD to drop even lower and look to retrace even lower. The next obvious target is the $1,050 support, which, if broken, would lead to a lot more downside in July.  The market has traded in the red over the last 24 hours. The leader, Bitcoin, lost 4.81 percent, while Ethereum a more substantial 9.17 percent. The rest of the top altcoins have followed close by, with some declining even further.

Ethereum price movement in the last 24 hours: Ethereum breaks past $1,175

ETH/USD traded in a range of $1,111.20 to $1,229.74, indicating substantial volatility over the last 24 hours. Trading volume has increased by 5.36 percent, totaling $14.58 billion, while the total market cap trades around $135.5 billion, resulting in market dominance of 15.13 percent.

ETH/USD 4-hour chart: ETH targets $1,050 next?

On the 4-hour chart, we can see the Ethereum price still testing further lows with no signs of reversal just yet. Therefore, more downside should follow to the $1,050 previous local swing low. Ethereum price action has seen strong bullish signals over the second half of June. After the initial reaction from the last swing low at $1,050, ETH/USD retraced to $1,175, setting a strong lower high. However, further downside did not follow as the $1,050 offered strong support.

From the newly found local higher low, ETH rallied higher one more time last week. A new high was set at $1,275, indicating that the several-week bearish momentum could soon end. On Monday, bearish momentum took over as buyers became exhausted. After some , ETH/USD set a lower local high and broke past the $1,775 local support. Late yesterday the decline continued, pushing the Ethereum price as low as the $1,100 mark.

This means that bullish momentum could soon come back. However, as long as bearish candles are seen later today, we expect further downside at the $1,050 previous low to be reached soon. From there, much depends on how the market will react. If a break below this support follows, we could see a lot more downside and both lower lows and highs set in July. Alternatively, if the $1,050 mark holds, ETH could move into consolidation.

Ethereum price analysis: Conclusion 

Ethereum price analysis is bearish today as we have seen a lot more retrace from the previous swing high at $1,275 so far this week. Since no signs of reversal have followed today, we expect ETH/USD to move even further and target the previous local low. In case it is broken, ETH should see a lot more downside early in July.

Related news:

Tesla Stock Losses Top $575 Billion As ‘Investor Patience Wears Thin’ With Elon Musk’s Twitter ‘Circus Show’

Shares of Tesla sank to an 11-month low on Tuesday after a bearish analyst note tacked on to a flurry of concerns for the electric-vehicle maker and high-profile chief Elon Musk—even as one of the firm’s staunchest bulls doubled down on its massive investment.

Tesla stock fell 7% to $628 on Tuesday, pushing the stock down nearly 49% from its all-time high in November and wiping over $30 billion from Tesla’s market capitalization, which has fallen to $650 billion from a peak of more than $1.2 trillion.

Prompting the steep decline, Daiwa analyst Jairam Nathan on Tuesday morning lowered his price target for Tesla shares to $800 from $1,150—telling clients Covid lockdowns in Shanghai, where the electric-vehicle maker operates its so-called Gigafactory, as well as supply issues impacting its Austin and Berlin plants, will cut deeper into earnings than previously expected.

Nathan forecasts the headwinds will push deliveries this year down by 180,000 vehicles, meaning Tesla will deliver 1.2 million vehicles this year, as opposed to the 1.4 million units previously expected.

The note comes one day after Wedbush analyst Dan Ives cautioned Twitter’s shareholder meeting this week will “surely kick off some more fireworks” between Musk and the social media firm’s board, adding to the “major overhang” as investors worry the proposed takeover could divert his attention from Tesla.

“Tesla investor patience is wearing very thin,” Ives said about the resulting back and forth, with Musk suggesting he’ll lower his offer due to concerns about bots on Twitter, while the company’s board says it won’t alter the deal.

Despite the bearishness, Ark Invest, the New York City investment firm helmed by famed stock-picker Cathie Wood, disclosed it bought $10 million in Tesla shares on Tuesday—adding to its stake for the first time since February less than a week after the stock lost its top spot on Ark’s flagship fund to streaming giant Roku.

“This [takeover] circus show has been a major overhang on Tesla’s stock and has been a black eye for Musk so far,” Ives said Monday, adding that “major market pressure for tech stocks” has only added to the uncertainty.

Shares of Tesla have racked up big losses since Musk suggested he would sell about 10% of his stake in November, with prices only collapsing further as the broader market struggles in the face of rising interest rates. Adding to concerns for Tesla, however, “the worst supply chain crisis seen in modern history” has threatened the firm’s production in highly profitable China, notes Ives.

The tech-heavy Nasdaq has plummeted 29% this year. Tesla, meanwhile, has plunged 47%. Even though its stock has struggled, Tesla reported its most profitable quarter in company history last month, posting $3.3 billion in first-quarter income fueled by record deliveries. $199 billion. That’s how much 50-year-old Musk, the world’s richest person, is worth, according to Forbes.

Source: Tesla Stock Losses Top $575 Billion As ‘Investor Patience Wears Thin’ With Elon Musk’s Twitter ‘Circus Show’

Critics by

Taking over Twitter may be good for Elon Musk, but it hasn’t been good for Tesla’s shares. One day after Twitter announced it had accepted Musk’s $44 billion takeover bid, Tesla shares sank 12.2%, wiping out more than $125 billion off the electric vehicle maker’s market value. The falls come as Wall Street fretted about how the deal could impact the electric vehicle maker and its stock price.

When Musk announced he had secured the money to finance the transaction, he said he would cover $21 billion himself, with banks helping finance the other half. What remains unclear is how he will come up with that money — whether he will sell some of the Tesla shares he owns, borrow against them, bring in additional investors, or all three.

There is also growing concern about whether owning Twitter would bring him into conflict over free speech with the government in China, a key market for Tesla where the auto maker also has significant production. On top of that, there is the risk Musk could become distracted by his latest acquisition. Musk is the CEO of Tesla and Space-X and is involved with other business ventures such as Neuralink, which develops brain implant technology, as well as The Boring Company, which makes tunnels.

If Musk does offload some of those holdings, it could drive Tesla’s share price down further. This is something the company warned investors about in its latest annual report, filed in February with the U.S. Securities and Exchange Commission. “If Elon Musk were forced to sell shares of our common stock that he has pledged to secure certain personal loan obligations, such shares could cause our stock price to decline,” the company wrote.

Further reading

Elon Musk Goes On The Attack After Tesla Cut From S&P ESG Index

Tesla Stock Plunge Wipes Out $128 Billion In Value As Twitter Deal Sparks Fears

Tesla’s Cybertruck has become the butt of every internet joke”

Tesla Battery Day recap: Major announcements include Model S Plaid and a $25,000 EV

Tesla Cybertruck may be unsafe for other road users, says Australian safety chief

Elon Musk confirms Tesla’s ‘Cyberquad’ as a Cybertruck accessory”. Engadget

Tesla boasts about electric car deliveries, plans for sedan”

Supply Agreement for Products and Services

Elon Musk: On the Roadster to Mars

Musk Sees Tesla’s Future: Trucks, Transit and Solar in a Push to Sustainability”

Elon Musk Confirms Tesla Minibus Built on Model X Chassis”

Elon Musk hints Tesla may not build a bus after all

Elon Musk was almost killed on a motorcycle, so Tesla will never build them

Elon Musk says Tesla’s next-gen Model 4 will be affordable for everyone

Tesla compact hatchback to launch within five years”

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Best ETFs For Rising Interest Rates

Down More Than 30%: Insiders Call a Bottom in These 3 Stocks

Despite brief periods of respite, the markets have mostly trended south in 2022, with the NASDAQ’s 28% year-to-date loss the most acute of all the main indexes.

So, where to look for the next investing opportunity in such a difficult environment? One way is to follow in the footsteps of the corporate insiders. If those in the know are picking up shares of the companies they manage, it indicates they believe they might be undervalued and poised to push higher.

To keep the field level, the Federal regulators require that the insiders regularly publish their trades; the TipRanks Insiders’ Hot Stocks tool makes it possible to quickly find and track those trades.

Using the tool we’ve homed in on 3 stocks C-suite members have just been loading up on – ones that have retreated over 40% this year. Let’s see why they think these names are worth a punt right now.

Carvana (CVNA)

First out of the gates, we have Carvana, an online used car retailer known for its multi-story car vending machines. The company’s ecommerce platform provides users with a simple way to search for vehicles to purchase or get a price quote for a vehicle they might want to sell. Carvana also offers add-on services such as vehicle financing and insurance to customers.

The company operates by a vertically integrated model – that is, it includes everything from customer service, owned and operated inspection and reconditioning centers (IRCs), and vehicle transportation via its logistics platform.

Carvana has been growing at a fast pace over the past few years, but it’s no secret the auto industry has been severely impacted by supply chain snags and a rising interest rate environment.

These macro developments – along with a rise in high used-vehicle prices and some more company-specific logistics issues – resulted in the company dialing in a disappointing Q1 earnings report.

Although revenue increased year-over-year by 56% to $3.5 billion, the net loss deepened significantly. The figure came in at -$506 million compared to 1Q21’s $82 million loss, resulting in EPS of -$2.89, which badly missed the analysts’ expectation of -$1.42.

Such an alarming lack of profitability is a big no-no in the current risk-free climate, and investors haven’t been shy in showing their disapproval – further piling up the share losses post-earnings and adding to what has been a precipitous slide; Overall, CVNA shares have lost 88% of their value since the turn of the year.

With the stock at such a huge discount, the insiders have been making their moves. Over the past week, director Dan Quayle – yes, the former vice president of the United States – has picked up 18,750 shares worth $733,875, while General Counsel Paul Breaux has loaded up on 15,000 shares for a total of $488,550.

Turning now to Wall Street, Truist analyst Naved Khan thinks Carvana stock currently offers an attractive entry point with compelling risk-reward.

“We see a favorable risk/reward following reset expectations, a 50+% decline in stock post earnings/capital raise and analysis of the company’s updated operating plan. Our analysis suggests at current levels the stock likely reflects a bear-case outcome for 2023 profitability along with lingering concerns around liquidity (addressed in the operating plan). We see room for meaningful upside to 2023 EBITDA under conservative base-case assumptions, with Stock’s intrinsic value >2x current levels. At ~1x fwd sales, we find valuation attractive,” Khan opined.

To this end, Khan rates CVNA a Buy, backed by an $80 price target. The implication for investors? Upside of a hefty 200%. (To watch Khan’s track record, click here)

What does the rest of the Street make of CVNA right now? Based on 7 Buys, 13 Holds and 1 Sell, the analyst consensus rates the stock a Moderate Buy. On where the share price is heading, the outlook is far more conclusive; at $83.74, the average target makes room for one-year gains of 214%. (See CVNA stock forecast on TipRanks)

Wolfspeed (WOLF)

We’ll now switch gears and move over to the semiconductor industry, where Wolfspeed is at the forefront of a transformation taking place – the transition from silicon to silicon carbide (SiC) andgallium nitride (GaN). These wide bandgap semiconductor substrates are responsible for boosting performance in power semiconductors/devices and 5G base stations, while the company’s components are also used in consumer electronics and EVs (electric vehicles), amongst others.

Like many growth names, Wolfspeed is still unprofitable, but both the top-and bottom-line have been steadily moving in the right direction over the past 6 quarters. In the last report – for F3Q22 – WOLF’s revenue grew by 37% year-over-year to $188 million, albeit just coming in short of the $190.66 million the Street expected. EPS of -$0.12, however, beat the analysts’ -$0.14 forecast. For F4Q22, the company expects revenue in the range of $200 million to $215 million, compared to consensus estimates of $205.91 million.

Nevertheless, companies unable to turn a profit in the current risk-free environment are bound to struggle and so has WOLF stock. The shares have declined 41% on a year-to-date basis, and one insider has been taking note. Earlier this week, director John Replogle scooped up 7,463 shares for a total of $504,797.

For Wells Fargo analyst Gary Mobley, it is the combination of the company’s positioning in the semiconductor industry and the beaten-down share price which is appealing.

“We view WOLF as one of the purest ways in the chip sector to play the accelerating market transition to pure battery electric automotive power trains,” the analyst wrote. “Not only have WOLF shares pulled back in the midst of the tech-driven market sell-off, but we are also incrementally more constructive on WOLF shares given we are on the cusp of the company’s New York fab ramping production, a game changer for WOLF as well as the SiC industry, in our view.”

Standing squarely in the bull camp, Mobley rates WOLF an Overweight (i.e. Buy), and his $130 price target implies a robust upside of ~99% for the next 12 months. (To watch Mobley’s track record, click here)

The Wall Street analysts are taking a range of views on this stock, as shown by the 10 recent reviews – which include 4 Buys and 6 Holds. Added up, it comes out to a Moderate Buy analyst consensus rating. The average price target, at $109.59, implies ~68% one-year upside from the current trading price of $65.40. (See WOLF stock forecast on TipRanks)

The Home Depot (HD)

Lastly, let’s have a look at a household name. The Home Depot is the U.S.’ biggest home improvement specialty retailer, supplying everything from building materials, appliances and construction products to tools, lawn and garden accessories, and services.

Founded in 1978, the company set out to build home-improvement superstores which would dwarf the competitors’ offerings. It has accomplished that goal, with 2,300 stores spread across North America and a workforce of 500,000. Meanwhile, the retailer has also built a strong online presence with a leading e-Commerce site and mobile app.

Recently, even the largest retail heavyweights have been struggling to meet expectations, a development which has further rocked the markets. However, HD’s latest quarterly update was a positive one.

In FQ1, the company generated record sales of $38.9 billion, beating Wall Street‘s $36.6 billion forecast. The Street was also expecting a 2.7% decline in comps but these increased by 2.2%, sidestepping the macroeconomic headwinds. There was a beat on the bottom-line too, as EPS of $4.09 came in above the $3.68 consensus estimate.

Nevertheless, hardly any names have been spared in 2022’s inhospitable stock market and neither has HD stock; the shares show a year-to-date performance of -31%. One insider, however, is willing to buy the shares on the cheap.

Last Thursday, director Caryn Seidman Becker put down $431,595 to buy a bloc of 1,500 shares in the company.

She must be bullish, then, and so is Jefferies analyst Jonathan Matuszewski, who highlights the positive noises made by management following the Q1 results.

“We came away from the earnings call with the view that management’s tone was more bullish on the US consumer than it has been in recent history. With backlogs strong across project price points, consumers trading up, and big-ticket transactions sequentially accelerating on a multi-year basis, we believe investor reservations regarding slowing industry sales growth are premature,” Matuszewski opined.

Matuszewski’s Buy rating is backed by a $400 price target, suggesting shares will climb 39% higher over the one-year timeframe. (To watch Matuszewski’s track record, click here)

Most on the Street also remain in HD’s corner; the stock has a Strong Buy consensus rating built on a solid 18 Buys vs. 4 Holds. The forecast calls for 12-month gains of 24%, given the average target clocks in at $357.35. (See HD stock forecast on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Source: Down More Than 30%: Insiders Call a Bottom in These 3 Stocks

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Here’s How Long It Takes For Stocks To Recover From Bear Markets

With the stock market on one of its worst losing streaks in decades amid a relentless selloff that has pushed the S&P 500 nearly 20% below its record highs, recession risks are rising—but history shows that not all bear markets lead to long-term downturns and stocks can often rebound over the next year.

The benchmark S&P 500 index briefly fell into a bear market last Friday—at one point down over 20% from its peak in January—and continues to hover near that territory as surging inflation and rising rates lead to recession fears.

The last bear market was in March 2020, when coronavirus pandemic lockdowns sent the U.S. economy into a recession, but that downturn was uncharacteristically brief compared to others in the past (the bear market between 2007 and 2009 lasted for 546 days).

“No two bear markets are exactly alike,” notes Bespoke Investment Group, pointing out that 8 out of 14 prior bear markets since World War II have preceded recessions, while the other 6 did not.

Once the S&P 500 does hit the 20% threshold, stocks typically fall by another 12% and it takes the index an average of 95 days to hit the end of a bear market, according to Bespoke data.

In more than half of the 14 bear markets since 1945, the S&P 500 hit a low point within two months of initially falling below the 20% threshold—and forward returns were largely positive, Bespoke points out, with the index rising an average of 7% and nearly 18%, respectively, over 6- and 12-month periods.

If the U.S. economy can avoid falling into a recession, then stocks would be in a better position going forward: Bear markets that occur before a recession are more prolonged (lasting 449 days compared to 198 days with no recession) with steeper losses (an average decline of 35% compared to 28%), according to Bespoke.

It has been several decades since the stock market has had such a long streak of heavy losses. The Dow Jones Industrial Average recently posted its eighth down week—its longest losing streak since around the time of the Great Depression in 1932, while the S&P 500 and tech-heavy Nasdaq Composite have moved lower for seven straight weeks, their longest losing streaks since the dot-com crash in 2001.

The last four times the Nasdaq posted such a streak of weekly losses of 1% or more was in 1973, 1980, 1990 and 2001, according to Bespoke data. In every instance, those streaks occurred “either right before or very early into a recession.”

The S&P 500 has only posted a losing streak of seven weeks or more three times—in 1970, 1980 and 2001, according to Nationwide’s chief of investment research, Mark Hackett. “Unfortunately, the index was negative over the next 12 months each time,” he says. The index could tank by between 11% and 24% if the economy falls into a recession in the near-term future, major Wall Street firms have warned.

“Persistent inflation, another Fed policy mistake and recession fears have unnerved investors,” with the S&P 500 briefly falling into bear market territory, says Edward Moya, senior market analyst for Oanda. The widespread selling will likely “only accelerate” as investors will remain wary until the Fed “starts to show signs that they are worried about financial conditions and that they may stop tightening so aggressively.”

I am a senior reporter at Forbes covering markets and business news. Previously, I worked on the wealth team at Forbes covering billionaires

Source: Here’s How Long It Takes For Stocks To Recover From Bear Markets

Critics:

A chaotic day on Wall Street extended the longest period of market turmoil since 2001, with stocks on Friday briefly descending into bear market territory, a symbolic marker of investors’ deep pessimism about the health of the global economy and the buying power of the American consumer.

The S&P 500 has fallen for seven consecutive weeks, its worst stretch since the dot-com bubble burst more than two decades ago. After a 3 percent drop this week, the index is down 14 percent since early April.

Friday afternoon, the S&P 500 crossed the bear market threshold of a 20 percent decline from its peak on Jan. 3. But with less than 30 minutes left before trading ended, after hours of churn and a drop of as much as 2.3 percent, the market rallied and ended a hair above where it had started the day.

That was little consolation for investors, many of whom have grown accustomed to years of robust returns and have never seen a market upheaval like this.

With this week’s relentless slide and Friday’s wild swing was a constant worry on Wall Street that rising inflation, compounded by the war in Ukraine, might tip the economy into a recession. At the heart of those fears was fresh evidence reported this week from retailers like Walmart and Target that rising costs were now hitting corporate America.

During the darkest days of the pandemic, the American economy was propelled by consumers. Even as the costs of goods, transportation and labor increased, companies were able to pocket record profits by raising prices, confident that people would continue buying. But this week brought indications that some consumers may have reached their limit, and profits have started to shrink.

“What the companies are telling us is that they are starting to notice that their consumer is responding to inflation,” said Jay Sole, a retail analyst at UBS. “We were worried about this moment and we were waiting for this moment, and now it’s here.”

Recessions have often followed bear markets, though one does not necessarily cause the other. A bear market occurred in the early days of the coronavirus pandemic, but it was the shortest on record, lasting just 33 days before stocks began to rally. Less than six months later, the S&P 500 began hitting new highs again, climbing 42 percent above its prepandemic level before starting to slide in January. Now the index is down more than 18 percent from its high point.

Friday’s turbulent trading came after months of investors fretting about how serious and long-lasting inflation would be and how aggressively the Federal Reserve would have to raise rates to slow the rising cost of living.

James Bullard, the president of the Federal Reserve Bank of St. Louis, said during an interview on Fox Business on Friday that raising interest rates by half a point at coming central bank meetings was “a good plan for now.”

Mr. Bullard struck a relatively unconcerned tone about markets, despite the day’s volatility. “You would expect with the Fed raising rates, that all of these assets — trillions of dollars worldwide — would have to be repriced,” Mr. Bullard said.

What set this week apart was a grim earnings report on Tuesday from Walmart, the nation’s largest retailer, which confirmed many investors’ worst fears about inflation.

For the first time in many years, Walmart said its quarterly profits had fallen, a sign to many analysts that the retailer could not pass along many of its rising costs to consumers without risking a slowdown in sales. Target and Kohl’s also said quarterly profits had plunged, adding to Wall Street’s unease.

Walmart said that some of its customers were buying less-expensive meats and other food items as costs soared, and that sales of certain discretionary goods like clothing had slowed, as budget-conscious shoppers focused instead on buying necessities like groceries. The company’s executives said they saw no signs of inflation starting to abate.

“There is a lot of uncertainty moving forward,” Walmart’s chief executive, Doug McMillon, said in a conference call with Wall Street analysts on Tuesday. “Things are very fluid.”

Globally, investors can find little comfort. The Russian invasion of Ukraine and the response from other countries has disrupted crucial supplies of energy, wheat and other staples. Poor countries face a gathering catastrophe over hunger and debt.

Janet L. Yellen, the Treasury secretary, said high food and energy prices were creating “stagflationary effects” — the combination of high inflation and a stagnating economy. China’s economy, the world’s second-largest after that of the United States, is laboring under the government’s strict pandemic lockdowns. Before the war in Ukraine and Covid’s resurgence in China, the International Monetary Fund was projecting global growth of 4.4 percent this year. Now its forecast is 3.6 percent.

Wall Street had been expecting that torrid consumer demand would have to slow at some point. Government stimulus checks that provided Americans with billions in spending money during the pandemic stopped long ago. The hope of both the Trump and Biden administrations was that the economy could eventually be weaned off the stimulus and that consumer demand would stay relatively strong.

But inflation, which has risen faster and remained more persistent than many investors and even the Fed initially expected, has thrown the recovery into doubt.

Unemployment is approaching the lowest rate in decades, and the economy has regained nearly 95 percent of the 22 million jobs lost at the height of coronavirus lockdowns. Average hourly earnings in the U.S. rose 5.5 percent in the year through April, but many of those gains are being eroded by inflation. Over that same period, prices rose 8.3 percent.

“The government just turbocharged the economy, and we were partying on buying goods,” said Scott Mushkin, the founder of R5 Capital, a retail-focused consulting and financial research firm. “People wondered what the hangover would be like. We have never seen anything like this.”

To be sure, some retailers said that not every consumer was pulling back or shifting spending. Walmart said better-off shoppers continued to spend freely on bigger-ticket items like patio furniture, and Target said it was not seeing a broad retreat in spending, either. Home Depot, which has benefited from a pandemic remodeling boom, said it was seeing no big slowdown in business.

But Mr. Sole of UBS worries that if prices continue to climb, higher-income consumers will eventually shift their spending, too. “Right now, lower-income consumers are feeling inflation more acutely,” he said. “The worry is, what if it affects all income and demographic groups?”For months, the mixed signals have been confounding Wall Street as it tries to forecast future profits and how high interest rates will climb.

The current conditions are also confusing to even the most experienced executives, who are finding it difficult to plan their inventory and staffing. Walmart, which is known for successfully navigating the last period of persistently high inflation, in the 1970s, acknowledged this week that it had too many employees in the first quarter and that it had not anticipated how rapidly the increase in gasoline prices would inflate costs in its supply chain. The company’s 25 percent decline in profit from the previous year was a big surprise to analysts.

“If these companies can’t handle this, it tells you something really unusual is afoot,” Mr. Mushkin said.

By:

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