Wal-Mart down

We learn this afternoon that Wal-Mart, the huge retailer has been downgraded as a stock, based on fears that Card-Check legislation might affect the profitability of the company. According to Reuters:

March 10 (Reuters) - Citigroup downgraded Wal-Mart Stores Inc (WMT.N) to "hold" from "buy" saying the proposed card check legislation would increase laborcosts and could be a significant drag to earnings for the world's largest retailer.

"We believe that WMT would be the primary target if EFCA/card check were to be passed," analyst Deborah Weinswig wrote in a note to clients.

Isn't that just fine and dandy. It hasn't passed yet and the threat of it is causing stocks to fall. According to the same article:

The legislation will be introduced on Tuesday in the U.S. Congress and if passed, it will make it easier for workers to unionize.

Known as "card check" or Employee Free Choice Act (EFCA), the legislation would let employees form a union if a majority of them in a workplace sign authorization cards. Wal-Mart shares closed at $47.51 Monday on the New York Stock Exchange.

According to market data, Wal-Mart closed today at $48.94.

Card-Check is a bad idea. A horribly bad idea. It's big labor's main objective at this point and it's bad for the economy.