Dow down 229 points, Walmart off 7.6%. Fox Business: All three of
the U.S. benchmark stock averages lost ground as investors reacted to a basket
of disappointing earnings led by Walmart which cut its profit forecast due to
inflation pressures. Shares were the worst Dow member dragging down consumer
discretionary stocks which weighed on the S&P 500 and Nasdaq Composite with
declines in Bed Bath and Beyond, Amazon and Dollar Tree shares (Fox Business).
Kiplinger: “The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars,” said Doug McMillon, CEO at Walmart, in the company’s press release. The company also cut its full-year profit forecast, as it expects even more pressure on general merchandise over the next two quarters (Kiplinger).
Wall Street Journal: The announcement sent Walmart’s shares down nearly 10% in after-hours trading Monday, and pressured other stocks, with Amazon.com Inc. falling about 4%. Walmart’s e-commerce rival is slated to report its latest results on Thursday. The warning casts a cloud over a week when a raft of global brands and multinational companies, from McDonald’s Corp. and Procter & Gamble Co. to Visa Inc. and General Motors Co., are slated to update investors on their latest quarterly results and the outlook for the rest of the year (Wall Street Journal).
No comments:
Post a Comment