The Dow Jones industrial has gone a wild ride as the Chinese market has entered into a correction. The industrial average dropped 3.5% yesterday and the stock prices of major retailers like Wal-mart, target and Costco followed but to the surprise of many analysts, they bounced back slightly.
While analysts are quick to scream that the sky is falling, others are holding off to see what will happen before making any grave predictions. CNBC economist Jack Kleinhenz pointed out that it's "too soon to make any changes to the near-term outlook for U.S. economic growth and consumer spending,"
Wal-mart has already lowered their forecasts based on the increased costs of labor and slumping currency markets. It remains to be seen how other large retailers like Macy's and Target will be affected by the slide. With back to school season in full swing and the holiday's coming on quickly many are expecting most big chain stocks to feel the pinch of a contracting economy.
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