STORY: More encouraging earnings from Walmart were offset by Target's profit slump, which dragged the retail sector lower.
Target reported that profit plummeted by 90% in the second quarter as it slashed prices to offload a glut of merchandise. Rival Walmart faces a similar challenge, but its more robust grocery business has provided an edge during inflationary times.
"We don't have to see a consumer stop spending to have a slowing economy," said Miller. "We just have to see their spending habits change and that's what we've heard so clearly in the earnings reports of the last couple days."