Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

U.S. stocks fall broadly as Wal-Mart, China sell-off weigh

Published 08/18/2015, 04:35 PM
Updated 08/18/2015, 04:42 PM
The Dow, NASDAQ and the S&P 500 closed slightly lower on Tuesday

Investing.com -- U.S. stocks fell broadly as a major decline in Wal-Mart (NYSE:WMT) shares and mounting concerns surrounding the Chinese equities markets offset strong gains in Home Depot (NYSE:HD), on a day when both key components of the Dow Jones Industrial Average reported quarterly earnings.

The Dow and the NASDAQ Composite index moved lower on Tuesday, as a continued downturn in energy stocks and a minor sell-off in Apple Inc (NASDAQ:AAPL) weighed. The S&P 500 Composite index also fell considerably on a bearish day for the major indices. The Dow lost 33.84 or 0.19% to 17,511.34, erasing some of Monday's gains, while the NASDAQ finished as the session's underperformer after losing 32.35 or 0.64% to close at 5,059.35.

The S&P 500 also fell 5.52 or 0.26% to 2,096.92, as all10 sectors closed in the red. Stocks in the Basic Materials and Technology sectors lagged, each closing down by more than 0.65% on the session.

The Dow initially fell sharply on Tuesday morning after Wal-Mart (NYSE:WMT) lowered its full-year guidance for 2015, before paring some of its gains amid strong quarterly earnings from Home Depot (NYSE:HD). At one point on Tuesday, Wal-Mart, the world's largest retailer, fell to near 30-month lows at $69.45, in spite of posting stronger than expected revenues for its previous quarter. For Wal-Mart's second quarter of 2015, which ended in late-July, the retail giant earned revenues of $120.3 billion, above analysts' forecasts for $119.72 billion in revenue. Wal-Mart also increased comparative U.S. store sales by 1.5%, marking the fourth straight quarter of positive gains in the category.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Wal-Mart, however, lowered its full-year guidance amid converging headwinds from negative currency impacts, higher employee expenses and increased shrinkage levels from theft and damaged goods. Shares in Wal-Mart, the worst performer on the Dow, fell more than 3.4% on the session.

Home Depot, meanwhile, rose its full-year outlook after its U.S. comparative store sales surged by 5.7% during its previous quarter. The Atlanta-based retailer of home improvement products earned more than $24.8 billion in revenue over the quarter, slightly topping analysts' forecasts. Home Depot credited an improving housing market and increased spending among higher-earning consumers for the revenue spike. Shares in Home Depot, the top performer on the Dow, added 3.12 or 2.61% to 122.82.

The biggest gainer on the NASDAQ was Ross Stores Inc (NASDAQ:ROST), which rose 2.04 or 3.74% to 56.54, after posting strong revenue growth estimates that exceeded the industry average. The worst performer was Micron Technology Inc (NASDAQ:MU), which fell 0.82 or 4.76% to 16.40.

The top performer on the S&P was TJX Companies Inc (NYSE:TJX), which surged 5.22 or 7.29% to 76.83 after posting stronger than expected quarterly earnings and revenue. The TJX Companies (NYSE:TJX), Inc. serves as the parent company of T.J. Maxx, HomeGoods and Marshalls. The worst performer was Chicago-based Real Estate Investment Trust Ventas Inc (NYSE:VTR), which plunged 8.72 or 12.73% to 59.80. Earlier on Tuesday, Ventas completed the spin-off of Care Capital Properties, a skilled nursing facility REIT.

On the New York Stock Exchange, declining issues outnumbered advancing ones by a 2,022 to 1,103 margin.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.