Yesterday, Walmart $WMT reported earnings and had the worst drop since Black Monday (1987). Today it was Target's $TGT turn! Target delivered revenue of $24.8B and EPS of $2.19 compared to expectations of $24.5B and EPS of $3.02. Target proceeded to drop by over 25% and Walmart continued to move lower.

Both of these companies said higher logistics costs caused a drag on profitability. Typically these companies have really stable margins, but the recent supply chain issues have thrown a wrench into their stability.

Even after its drop, Walmart is still trading at close to 25x earnings. Target on the other hand is trading near 10x earnings. This makes Walmart more expensive than Apple, Microsoft, and Alphabet.

Currently, the retail market is under fire as growth is slowing across the industry. If you look at revenue growth numbers for Amazon, Walmart, and Target it is clear things are slowing down after the recent spending boom.

What about the consumer? Well, they don't seem too happy as the recent consumer sentiment data continues to drop to decade lows.

All in all, this week has been another rough one for both investors and consumers.