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Index falls as Walmart profit warning spooks investors

Wall Street slips as ad tech, weighs social media stocks
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Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 21, 2022. REUTERS/Brendan McDermid

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  • Walmart Cuts Profit Forecast; The news hits retailers
  • McDonald’s as sales, profit top estimate
  • Coca-Cola Growth Forecast
  • Indexes: Down 0.7%, S&P 500 down 1.2%, Nasdaq down 1.9%

NEW YORK, July 26 (Reuters) – U.S. stocks fell sharply on Tuesday as Walmart’s profit warning dragged down retail shares and worries about the cost of exceptionally weak consumer confidence data.

Walmart (WMT.N) Shares sank 7.6% late Monday after the retailer cut its full-year profit forecast. Walmart blamed rising prices for food and fuel and said it had to cut prices to close inventory. Read more

Shares of Target Corporation (TGT.N)Amazon.com Inc. fell 3.6% (AMZN.O) fell 5.2%, while the S&P 500 retail index (.SPXRT) decreased by 4.2%. Read more

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On Tuesday, data showed that U.S. consumer confidence fell to a nearly 1-1/2-year low in July amid continued concerns about high inflation and rising interest rates. Read more

“Most of the companies that reported today beat (on) earnings and that’s it. But there are certainly some caveats and that’s where the market is focusing,” said Peter Cardillo, chief market economist at Spartan Capital Securities. New York.

Amazon, which said it would raise fees for delivery and streaming service Prime in Europe by up to 43% a year, was the biggest drag on the Nasdaq and the S&P 500, while consumer discretionary (.SPLRCD)It fell 3.3% and led the decline among the S&P 500 sector. Read more

The Federal Reserve has started a two-day meeting, and on Wednesday it is expected to announce a 0.75 percentage point interest rate hike to fight inflation. Read more Investors worry that aggressive interest rate hikes by the Fed could tip the economy into recession.

Dow Jones Industrial Average (.DJI) The S&P 500 fell 228.5 points, or 0.71%, to 31,761.54. (.SPX) The Nasdaq Composite lost 45.79 points, or 1.15%, to 3,921.05. (.IXIC) It fell 220.09 points, or 1.87%, to 11,562.58.

A busy week for earnings also included reports from Alphabet Inc (GOOGL.O) and Microsoft Corporation (MSFT.O) after hours

Shares of Microsoft fell 0.5% in after-hours trading while Alphabet rose 3% after the company’s results. Microsoft ended the regular session 2.7% lower and Alphabet 2.3% lower on the day. Read more

Investors looked to see if this week’s earnings news from mega-cap companies could help the stock market maintain its recent rally. Read more

According to Refinitiv data, earnings from S&P 500 companies were expected to rise 6.2% in the second quarter from the year-earlier period.

Also during the regular session, Coca-Cola Co (KO.N) The company gained 1.6% after raising its full-year revenue forecast. McDonald’s Corporation (MCD.N) The quarter rose 2.7% after missing expectations. Read more

3MCo (MMM N) The industrial giant rose 4.9% after plans to spin off its healthcare business. Read more General Electric Co. (GE.N)The industrial conglomerate gained 4.6% after missing revenue and profit estimates.

On the other hand, the International Monetary Fund again lowered its global growth forecast. Read more

Volume on US exchanges was 9.60 billion shares, compared to the 10.93 billion average for the full session over the past 20 trading days.

The number of issues advanced to the NYSE decreased by a ratio of 1.73-to-1; On the Nasdaq, a 1.72-to-1 ratio favors the decliners.

S&P 500 posts 1 new 52-week high and 30 new lows; The Nasdaq Composite recorded 39 new highs and 138 new lows.

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Additional reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Edited by Arun Coeur, Anil D’Silva and David Gregorio

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