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U.S. Stocks Down After Walmart Profit Warning Spooks Retailers

Stock Markets Jul 26, 2022 09:48AM ET
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© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks fell on Tuesday after Walmart’s profit warning spooked the retail sector, as investors braced for the Federal Reserve’s interest rate decision this week.

At 10:29 AM ET, the Dow Jones Industrial Average fell 93 points, or 0.3%, while the S&P 500 fell 0.8%, and the NASDAQ Composite fell 1.5%.

Walmart Inc. (NYSE:WMT) said its profit would be hit by rising inflation that is forcing shoppers to make tradeoffs, spending more on necessities such as food and putting off discretionary purchases such as clothes, which happen to be higher margin products for the retailer. Shares fell 8%.

Other retailers were also taking a hit. Shares of Target Corporation (NYSE:TGT) fell 4%, while shares of Kohl's Corp. (NYSE:KSS) fell 7% and shares of Macy's, Inc. (NYSE:M) fell 3%.

One bright spot on Tuesday was The Coca-Cola Company (NYSE:KO), which raised its full-year forecast. Shares rose 1.7%. McDonald’s Corporation (NYSE:MCD) shares rose 1.8% after beating comparable store sales expectations.

Shopify Inc. (NYSE:SHOP) fell 16.8% after it said it would lay off 10% of its workforce. General Motors Company (NYSE:GM) missed expectations and said it had a 40% drop in net income, adding it would curb spending and hiring. Shares of the automaker fell 3.3%.

The Fed’s interest rate decision is due Wednesday afternoon, with most expecting it to raise the benchmark rate another 0.75 percentage point. But investors will be focused on what officials say about the economy, especially Chair Jerome Powell.

Oil rose. Crude Oil WTI Futures was up 1.4%, to $98 a barrel, while Brent Oil Futures rose 1.6%, to $101.84 a barrel. Gold Futures was flat at $1,719 an ounce.

U.S. Stocks Down After Walmart Profit Warning Spooks Retailers
 

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Comments (8)
Mitchel Pioneer
Mitchel Pioneer Jul 26, 2022 11:08AM ET
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FED manufactured/subsidized "earnings" continue to flow, and the laughingstock of the financial world remains criminally propped at a level twice its value.  Looks like there's no end in sight to the fraud.
Ronald Warren
Ronald Warren Jul 26, 2022 10:44AM ET
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NASDAQ had no business running back to 12000. Artificial pump! I don't care if Powell only raises rates .50% Any increases are not good for the NASDAQ! Not good for the economy either, but they have to slow down this overpriced freight train! Correction Time!
Stan Smith
Stan Smith Jul 26, 2022 10:43AM ET
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No surprises here. Thought these markets were forward thinking? lol
Stan Smith
Stan Smith Jul 26, 2022 10:42AM ET
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No surprises here. Thought these markets were forward thinking? lol
Andrew Sim
Andrew Sim Jul 26, 2022 10:39AM ET
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it will pump harder
Casador Del Oso
Casador Del Oso Jul 26, 2022 10:18AM ET
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not much of a spook.
James Wills
James Wills Jul 26, 2022 10:13AM ET
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lol
Devis Mazza
Gatto Jul 26, 2022 10:11AM ET
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But why didn't they know? Did they need the scientist to understand this nonsense? any excuse is good for taking people's savings away.
 
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