Target takes target way down

First Lowe's (NYSE: LOW) said that it would have a poor quarter. The home supply retailer said that its fiscal year earnings would be at the low end or below previous forecasts. But, the evening news got worse.

Big retailer Target (NYSE: TGT) said that it would miss its September same-store sales by a mile. The company's forecast had been 4% to 6%, but the firm now "expects same-store sales to rise 1.5% to 2.5% for the month", according to MarketWatch.

Last year, Target's same store sales for the period rose 6.7%.

After hours, Lowe's lost 6% falling to $28.75. Target fell almost 4% to $61.74.

Final same-store sales for most big retailers will not be out for two weeks, but the figures from two such large companies, one in housing supplies and the other a discount retailer, would indicate that a recession is already running through the industry. If Wal-Mart (NYSE: WMT) reports a weak September, there is reason to believe that the holiday season will be a difficult one for retailers.

The National Retail Federation has already predicted that this will be the slowest November/December since 2002. The organization believes that overall retail will move up 4%. But, today's numbers may make Wall Street question whether that number is too high.

Douglas A. McIntyre is a partner at 24/7 Wall St.