US stock futures fell and retail stocks fell in front of the market on Tuesday morning after Wal-Mart lowered its profit forecasts.
The Dow Jones Industrial Average futures fell 141 points (0.4%). S & P 500 futures also fell 0.4% and Nasdaq 100 futures fell 0.5%.
Late Monday announcement from Wal-Mart, Reduced quarterly and full-year profit estimates Investors who considered the impact of rising food inflation on other retail stocks were wary. Large retailers said rising prices have spurred consumers to lower general commodity spending, especially in apparel.
Wal-Mart plunged 9% in early morning transactions, dragging other retailers. Targets fell 5.2% and Amazon fell 3.7%. Coles and Dollar General lost 4.5% and 3.6%, respectively, while Costco lost 3.1%.
“Obviously, they have the wrong thing and have to sell more aggressively to get rid of it, which is pretty dramatic as a result,” said Jeremy Brian, senior portfolio manager at Gradient Investments. You will be hit. ” Said during CNBC “Closing bell: Overtime.”
“The question is how this relates to other discretionary spaces,” Brian added.
Elsewhere, General Motors fell 3.6% in pre-market transactions after the company missed an estimate of earnings. Quote supply chain turmoil It has its roots in Russia’s Ukrainian war and the global blockade of Covid. UPS shares fell 1.8% after the shipping giant, despite the company’s earnings and earnings surpassing in the second quarter. Reported decrease In its international and supply chain business.
On the contrary, Coca-Cola’s share price rose 1.3% in front of the market after exceeding earnings and earnings expectations. Quote sales volume recovery It fell in a pandemic and higher pricing.McDonald’s shares were traded just above the flat line in subsequent early trading Mixed Q2 resultsAlthough net sales were partially hit by the closure of bases in Russia and Ukraine, international growth in other regions spurred an increase in same-store sales.
Traders are also preparing for this week’s megacap technology earnings and economic data onslaught, and the results of the Federal Reserve Board, helping Wall Street look forward to the rest of the year.
“I think the market will be bifurcated,” said Avery Sheffield of Vantage Rock Capital in CNBC’s Closing Bell: Overtime. “I think the bottom may be in one stock, but not in another. So this is actually one of the most dynamic earnings seasons we’ve seen in the long run. there is a possibility.”
During the session on Monday, stocks traded narrowly and the S & P 500 rose 0.1%. The Dow Jones Industrial Average rose 90.75 points, or 0.3%. The Nasdaq Composite Index, which makes heavy use of high tech, lags behind and slides 0.4%. All the major averages are on track towards the best month of the year.
On Tuesday, the Federal Reserve will begin its two-day policy meeting. Traders are widely expecting a three-quarter percentage increase.
Economically, investors are expecting the latest reading of the 9 AM ET Case-Shiller Home Price Index. The Consumer Confidence Report and new home sales data will be released at 10am ET.