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U.S. stocks extend losses after Walmart's 2023 outlook disappoints

Published 02/21/2023, 09:55 AM
Updated 02/21/2023, 11:27 AM
© Reuters.

© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks extended their losses on Tuesday after retail giant Walmart issued a gloomy outlook for 2023.

At 11:25 ET (16:25 GMT), the Dow Jones Industrial Average was down 518 points or 1.5%, while the S&P 500 was down 1.6% and the NASDAQ Composite was down 1.9%.

Walmart Inc. (NYSE:WMT), the U.S.'s largest retailer forecast full-year earnings that came in below estimates. Consumers are bargain hunting, and that could pressure its margins. Shares of Walmart recovered earlier losses and were trading up 0.6%.

Home Depot, Inc. (NYSE:HD), the home improvement retailer, also issued a profit forecast that was lower than expected after higher supply chain costs and weak demand. Shares of Home Depot fell more than 5%.

Investors had hoped retail earnings would provide some hope that the Federal Reserve was nearing the end of its interest rate hiking. That hope has lifted stocks this year, especially tech stocks.

But recent data on inflation has pointed to still strong trends. The market believes the Fed will raise rates by another quarter of a percentage point when it meets in March and again in May.

On Wednesday, the Fed will release its meeting minutes from earlier this month, providing investors another chance to parse the words of Fed officials to see where they are headed on interest rate policy.

This week's economic data includes another reading of gross domestic product for the fourth quarter, and personal spending and personal income and the Fed's preferred inflation measure, the core personal consumption expenditure index, all due out Friday.

Oil was falling. Crude Oil WTI Futures was flat at $76.53 a barrel, while Brent Oil Futures crude fell 1.2% to $83.11 a barrel. Gold Futures was down 0.3% to $1845.

Latest comments

Today's drop had nothing to do with WalMart and everything to do with Biden's war escalation and run away spending.
following that ol' blame-biden-for-everything-under-the-sun-regardless-of-facts-or-truth-playbook are we?
Facts really bother you DNC bots.
s&p 3000 by June. The fed is done messing around.
Time to buy when S&P hits 3800
very nice every day there is reason to cheat traders
this text will be there for days, only with small changes 🤣🤣🤣🤣
looking for 3700 or lower by beginning of March
What fraud and deception , oh the fed bull too, right!
please tell me what day the world is going to end.  love how these article triger MMs.  right on que.. Another Corrupt POS writer
No worries, these losses will evaporate by 3pm. The pixie dust solution of creating liquidity out of thin air comes in handy. Right FED?
I thought a slowdown is what the market wanted? Oh well,  probably a 500pt gain back tomorrow because of...'things'.
Come on, you can go even further to the bottom, that's what you're experts at
WMT beat quaterly earnings by 5B. That’s why it’s rising.
Algos know we're in for a confrontation. Biden committed 500 billion dollars to the war effort in Ukraine. Backed Putin into a corner. He'll come out fighting.
WMT share price is rising!
they brought down the dow jones because of the wmt, that means they are manipulating, lying, cheating, that's a bunch of shameless corrupt swindlers from wall street
Goat sheat
manipulation , lie , lie , reason to put market down while president have toursim in eu
The fake US debt bubble economy is collapsing
On, no!!!
So if its so bad why is walmart stock up today?
Um...well...global warming?
🤣🤣🤣🤣
Why is anyone surprised by a cuatious outlook when we been fed nothing but recession fears for a year straight
uhhh joke right. US STOCKS ARE FALLING BECAUSE BOND YOELDS RISE YET AGAIN TO ANOTHER 30 FAY HIGH SPOOKING INVESTIRS CONCERNED ON THE 30, OR XX?? TRILLION IN US DEBT THAT WOULD CRASH THE MSRKETS IF THE FED DONT JUMP IN AGAIN BIG.
Nikola has great trucks why you don't write about nicer things.
Sure, Nikola will go bankrupt. They only have the dream, but no money to back it up. 6month will run out of cash again. Then what? Another share offering? Taking a loan with 10% interest.
Just eat the loss on Nikola it’s not gonna gi back up
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