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Grim news from Walmart sends US markets tumbling
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Leroy N. Soetoro
Jul 26, 2022, 2:09:06 PM7/26/22
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https://www.msn.com/en-us/money/markets/grim-news-from-walmart-sends-us-
markets-tumbling/ar-
AAZYYV2?ocid=msedgntp&cvid=0ee1e5fac22749e9b8adba33b3ee9f77
Stocks are lower on Wall Street in early afternoon trading Tuesday after
Walmart warned that inflation was negatively impacting American consumers'
spending power.
The S&P 500 was down 1% as of 1:02 p.m. Eastern, wiping out modest gains
from a day earlier. The Dow Jones Industrial Average was down 108 points,
or 0.3%, at 31,883 and the Nasdaq Composite slid 1.6%.
Walmart shares dropped nearly 8% after the retail giant cut its profit
outlook for the second quarter and the full year, saying rising prices for
food and gas are forcing shoppers to cut back on discretionary items,
particularly clothing, that carry higher profit margins.
Walmart’s profit warning in the middle of the quarter is rare, and raised
worries about how the highest inflation in 40 years is affecting the
entire retail sector. Stocks of other major chains fell following
Walmart’s announcement, made after Wall Street's closing bell on Tuesday.
Target was down 4.7%, Macy’s slid 6% and Kohl’s was 6.9% lower.
Investors have remained deeply concerned about the negative impacts of
inflation on company profits and how it will impact the U.S. consumer.
While Americans' balance sheets are relatively strong from the savings
they built up during the pandemic, those savings are being spent on high
gas and food prices.
The major indexes are coming off solid gains last week fueled by mostly
better-than-expected reports on corporate profits. Falling yields in the
bond market also helped, easing the pressure on stocks after expectations
for rate hikes by the Federal Reserve propelled yields higher much of this
year.
The central bank is expected to announce a rate hike of up to three-
quarters of a percentage point on Wednesday, triple the usual margin. The
central bank is waging an aggressive campaign to stem four-decade high
inflation. The expected hike would put the Fed’s benchmark rate in a range
of 2.25% to 2.5%, the highest since 2018.
Bond yields were mostly lower Tuesday. The two-year Treasury yield, which
tends to move with expectations for the Fed, held steady at 3.02%. The 10-
year yield, which influences mortgage rates, fell to 2.78% from 2.82% late
Monday.
Technology stocks, retailers and communication companies were among the
biggest drags on the benchmark S&P 500 index. Microsoft was down 3.3%,
Amazon slid 4.4% and Meta was 3.3% lower.
Those losses easily outweighed gains in the health care and utilities
sector stocks. Small company stocks also fell, sending the Russell 2000
0.6% lower.
Investors had their eye on the latest batch of corporate earnings reports.
Shares of automaker General Motors fell 2.7% after the company said its
second-quarter profit fell 40% from a year ago, as computer chip and parts
shortages hobbled factory output and drove the company’s U.S. sales down
more than 15%.
The Detroit automaker earned $1.67 billion from April through June, well
below the $2.79 billion it made a year earlier. GM couldn’t deliver 95,000
vehicles during the quarter because it lacked parts.
Shopify slumped 15.3% after the Canadian e-commerce company said it is
cutting 10% of its staff, or about 1,000 employees, as it reckons with an
unexpected sales downturn after a pandemic-fueled explosion.
Tech heavyweights Alphabet and Microsoft report their results after the
closing bell, while Meta, Apple and Amazon report later in the week.
Related video: US retailers' stock tumble after Walmart cuts profit
forecast
--
"LOCKDOWN", left-wing COVID fearmongering. 95% of COVID infections
recover with no after effects.
No collusion - Special Counsel Robert Swan Mueller III, March 2019.
Officially made Nancy Pelosi a two-time impeachment loser.
Donald J. Trump, cheated out of a second term by fraudulent "mail-in"
ballots. Report voter fraud: sf.n...@mail.house.gov
Thank you for cleaning up the disaster of the 2008-2017 Obama / Biden
fiasco, President Trump.
Under Barack Obama's leadership, the United States of America became the
The World According To Garp. Obama sold out heterosexuals for Hollywood
queer liberal democrat donors.
President Trump boosted the economy, reduced illegal invasions, appointed
dozens of judges and three SCOTUS justices.
markets-tumbling/ar-
AAZYYV2?ocid=msedgntp&cvid=0ee1e5fac22749e9b8adba33b3ee9f77
Stocks are lower on Wall Street in early afternoon trading Tuesday after
Walmart warned that inflation was negatively impacting American consumers'
spending power.
The S&P 500 was down 1% as of 1:02 p.m. Eastern, wiping out modest gains
from a day earlier. The Dow Jones Industrial Average was down 108 points,
or 0.3%, at 31,883 and the Nasdaq Composite slid 1.6%.
Walmart shares dropped nearly 8% after the retail giant cut its profit
outlook for the second quarter and the full year, saying rising prices for
food and gas are forcing shoppers to cut back on discretionary items,
particularly clothing, that carry higher profit margins.
Walmart’s profit warning in the middle of the quarter is rare, and raised
worries about how the highest inflation in 40 years is affecting the
entire retail sector. Stocks of other major chains fell following
Walmart’s announcement, made after Wall Street's closing bell on Tuesday.
Target was down 4.7%, Macy’s slid 6% and Kohl’s was 6.9% lower.
Investors have remained deeply concerned about the negative impacts of
inflation on company profits and how it will impact the U.S. consumer.
While Americans' balance sheets are relatively strong from the savings
they built up during the pandemic, those savings are being spent on high
gas and food prices.
The major indexes are coming off solid gains last week fueled by mostly
better-than-expected reports on corporate profits. Falling yields in the
bond market also helped, easing the pressure on stocks after expectations
for rate hikes by the Federal Reserve propelled yields higher much of this
year.
The central bank is expected to announce a rate hike of up to three-
quarters of a percentage point on Wednesday, triple the usual margin. The
central bank is waging an aggressive campaign to stem four-decade high
inflation. The expected hike would put the Fed’s benchmark rate in a range
of 2.25% to 2.5%, the highest since 2018.
Bond yields were mostly lower Tuesday. The two-year Treasury yield, which
tends to move with expectations for the Fed, held steady at 3.02%. The 10-
year yield, which influences mortgage rates, fell to 2.78% from 2.82% late
Monday.
Technology stocks, retailers and communication companies were among the
biggest drags on the benchmark S&P 500 index. Microsoft was down 3.3%,
Amazon slid 4.4% and Meta was 3.3% lower.
Those losses easily outweighed gains in the health care and utilities
sector stocks. Small company stocks also fell, sending the Russell 2000
0.6% lower.
Investors had their eye on the latest batch of corporate earnings reports.
Shares of automaker General Motors fell 2.7% after the company said its
second-quarter profit fell 40% from a year ago, as computer chip and parts
shortages hobbled factory output and drove the company’s U.S. sales down
more than 15%.
The Detroit automaker earned $1.67 billion from April through June, well
below the $2.79 billion it made a year earlier. GM couldn’t deliver 95,000
vehicles during the quarter because it lacked parts.
Shopify slumped 15.3% after the Canadian e-commerce company said it is
cutting 10% of its staff, or about 1,000 employees, as it reckons with an
unexpected sales downturn after a pandemic-fueled explosion.
Tech heavyweights Alphabet and Microsoft report their results after the
closing bell, while Meta, Apple and Amazon report later in the week.
Related video: US retailers' stock tumble after Walmart cuts profit
forecast
--
"LOCKDOWN", left-wing COVID fearmongering. 95% of COVID infections
recover with no after effects.
No collusion - Special Counsel Robert Swan Mueller III, March 2019.
Officially made Nancy Pelosi a two-time impeachment loser.
Donald J. Trump, cheated out of a second term by fraudulent "mail-in"
ballots. Report voter fraud: sf.n...@mail.house.gov
Thank you for cleaning up the disaster of the 2008-2017 Obama / Biden
fiasco, President Trump.
Under Barack Obama's leadership, the United States of America became the
The World According To Garp. Obama sold out heterosexuals for Hollywood
queer liberal democrat donors.
President Trump boosted the economy, reduced illegal invasions, appointed
dozens of judges and three SCOTUS justices.
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