The Stock Market Has a Profit Problem
- Industrials stocks are heading for the worst month since 2012
- Higher rates and labor costs, trade war woes crimp margins
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Package maker Sealed Air Corp. fell the most in six months Thursday after saying higher raw material costs would crimp the bottom line. A few days earlier it was rising freight outlays at Fastenal Co., where $1.1 billion of market value was erased. On Oct. 9, paint maker PPG Industries Inc. mentioned rising expenses. The shares cratered.
From railroads to retailers, signs of price pressures are starting to show at U.S. industrial companies, contributing to the worst October start for the S&P 500 since 2008. Equities have had their three worst sessions since April in the space of eight days, narrowly escaping a fourth straight down week thanks to a Thursday rally.