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Is WalMart In Terminal Decline? This Chart Is One More Reason To Think So

Is WalMart In Terminal Decline? This Chart Is One More Reason To Think So

We’ve spilled quite a bit of digital ink documenting WalMart’s trials and travails since the world’s largest retailer moved last year to implement an across-the-board wage hike for its lowest-paid employees.

That decision led directly to a series of unfortunate events including a move to squeeze extra savings out of suppliers and an effort to recoup the money spent on the wage hikes by - you guessed it - firing people, including dozens at the home office in Bentonville.

Manufacturing Recession Spills Over Into Services After Dismal PMI, ISM Data

Manufacturing Recession Spills Over Into Services After Dismal PMI, ISM Data

In the words of Markit's chief economist, "the US upturn has lost substantial momentum over the past two months," as the golden child of any current bullish narrative - the Services economy - drops to its weakest since October 2013 (PMI 53.2, missing expectations). Plunging backlogs suggest hiring will slow notably and then ISM Services hit at a 23-month low, plunging back towards manufacturing's weakness, with employmenmt at its weakest sicne April 2014 and unadjusted new orders at their weakest since Jan 2014.

Futures Jump After Bill Dudley Hints At Fed "Policy Error", Warns Of "Significant Consequences" From Strong Dollar

Futures Jump After Bill Dudley Hints At Fed "Policy Error", Warns Of "Significant Consequences" From Strong Dollar

With the market now predicting virtually zero rate rate hikes for the rest of 2016...

 

... the Fed will have to take a machete to its next exercise in erroneous groupthink known as the "dot plot", when it will have to admit it was dead wrong about the state of the US and global economy.

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