Hopes for a supermarket recovery have been pushed back yet again while Wall Street rethinks earnings expectations as food costs rise, unemployment remains high and consumer spending stays fragile.
The shares of Supervalu Inc , Safeway Inc and Whole Foods Market Inc were among the stock market's biggest losers on Tuesday after investment firms cut ratings on them.
"It's obvious we're still not in a robust economic environment," BMO Capital Markets analyst Karen Short said in a conference call with clients to discuss estimates and ratings revisions for the industry.
Tempered expectations for year-over-year profit growth are "reasonable in an environment that is still quite choppy," she added.
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