Market Snapshot: U.S. stock futures slip after Walmart profit warning


U.S. stock-index futures edged lower Tuesday, hurt by Walmart cutting profit guidance ahead of a wave of corporate earnings reports this week.

What’s happening
  • Futures on the Dow Jones Industrial Average YM00, -0.35% fell 123 points, or 0.4%, to 31,844.
  • S&P 500 futures ES00, -0.30% dropped 14 points, or 0.4%, to 3,956.
  • Nasdaq-100 futures NQ00, -0.34% were off 54.75 points, or 0.4%, at 12,299.75.

On Monday, the Dow DJIA, +0.28% rose 91 points, or 0.3%, while the S&P 500 SPX, +0.13% ticked up 0.1% and the Nasdaq Composite COMP, -0.43% lost 0.4%.

What’s driving markets

Walmart WMT, -0.14% late Monday cut its profit outlook, saying inflation on food has caused it to conduct more markdowns in apparel. Shares of the Dow component fell nearly 10% in premarket trade. The opposite side of that coin was Unilever UL, +0.26%, as the maker of Hellmann’s mayonnaise and Ben & Jerry’s ice cream said price rises were able to offset reduced volume.

“It was a steady start for most markets to a big earnings week, until Walmart issued a warning after hours. The stock lost 10% and there was negative read-across for the rest of the U.S. consumer sector,” said Ian Williams, strategist at U.K. broker Peel Hunt.

Investors were assessing a massive slate of earnings, including General Motors Co. GM, -0.43%, and Dow components McDonald’s Corp. MCD and Coca-Cola Co. KO, +0.97%, and after the close, tech titans Alphabet Inc. GOOGL, -0.36% and another Dow component, Microsoft Corp. MSFT, -0.59%.

The Federal Reserve starts its two-day interest-rate-setting meeting Tuesday, and the U.S. economic calendar also includes the S&P Case-Shiller May house price index, the Conference Board July consumer confidence, and June new-home sales reports.

Companies in focus
  • Shares of General Motors GM, -0.43% lost ground after the car maker’s second-quarter profit fell short of estimates, offsetting a revenue beat.
  • 3M Co. MMM, said it would spin off its healthcare business to create two public companies to pursue their growth plans. The new 3M will be a global material science company with a range of industrial and consumer markets, while the healthcare company will focus on wound care, healthcare IT, oral care and biopharma filtration. Shares of the Dow component rose over 4%.
  • McDonald’s MCD, -1.42% shares were slightly lower after the fast-food giant and topped Wall Street earnings expectations but fell short on revenue.
  • Coca-Cola shared moved higher after beating expectations for adjusted profit and revenue despite cost and currency headwinds.

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