Good morning traders and investors of the r/stocks sub! Welcome to Tuesday! Here are your pre-market stock movers & news on this Tuesday, July the 26th, 2022-
Stock futures fall after Walmart cuts forecast, says inflation hit consumer spending
U.S. stock futures fell on Tuesday morning after Walmart cut its profit forecast, sending retail stocks tumbling in the premarket.
Dow Jones Industrial Average futures fell by 141 points, or 0.4%. S&P 500 futures lost 0.4% also and Nasdaq 100 futures declined 0.5%.
A late Monday announcement from Walmart, which cut its quarterly and full-year profit estimates because of rising food inflation, alarmed investors who deliberated the implications for other retail stocks. The big-box retailer said higher prices are spurring consumers to pull back on general merchandise spending, particularly in apparel.
Walmart plunged 9% in early morning trading and dragged other retailers with it. Target dropped 5.2%, and Amazon fell 3.7%. Kohl’s and Dollar General lost 4.5% and 3.6%, respectively, while Costco shed 3.1%.
“Clearly, they have the wrong stuff, and they have to sell it more aggressively to clear that out, which looks like it’s going to take a pretty dramatic hit as a result of that,” Jeremy Bryan, senior portfolio manager at Gradient Investments, said during CNBC’s “Closing Bell: Overtime.”
“The question is, how does this relate to the rest of the discretionary space?” Bryan added.
General Motors fell 3.6% in premarket trading after the company missed earnings estimates, citing supply chain disruptions stemming from Russia’s war on Ukraine and global Covid lockdowns.
Elsewhere, Coca-Cola shares rose 1.3% premarket after the topped earnings and revenue expectations, citing recovering sales volume that dropped in the pandemic and higher pricing.
Shares of McDonald’s eked traded just above the flat line in early trading following mixed second-quarter results, in which net sales were hurt in part by the closure of locations in Russia and Ukraine, but international growth elsewhere fueled a rise same-store sales.
General Electric, UPS and 3M also reported strong quarterly earnings Tuesday.
Traders are bracing for an onslaught of mega-cap tech earnings and economic data this week, as well as the outcome of the Federal Reserve meeting, that will help Wall Street direct its expectations for the rest of the year.
“I think that there’s going to be a bifurcated market,” VantageRock Capital’s Avery Sheffield said during CNBC’s “Closing Bell: Overtime.” “I think the bottom might be in certain stocks, but nowhere in others. So this actually could be one of the most dynamic earnings seasons we’ve seen in a long time.”
Stocks traded in a narrow range during Monday’s session, with the S&P 500 adding 0.1%. The Dow Jones Industrial Average climbed 90.75 points, or 0.3%. The tech-heavy Nasdaq Composite lagged, sliding 0.4%. All of the major averages are on track for their best month of the year.
On Tuesday, the Federal Reserve will commence its two-day policy meeting. Traders are widely expecting a three-quarter percentage point hike.
On the economic front, investors are expecting the latest reading of the Case-Shiller Home Price Index at 9 a.m. ET. The consumer confidence report and new home sales data are due out at 10 a.m. ET.
STOCK FUTURES CURRENTLY:
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YESTERDAY'S MARKET MAP:
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TODAY'S MARKET MAP:
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YESTERDAY'S S&P SECTORS:
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TODAY'S S&P SECTORS:
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TODAY'S ECONOMIC CALENDAR:
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THIS WEEK'S ECONOMIC CALENDAR:
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THIS WEEK'S UPCOMING IPO'S:
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THIS WEEK'S EARNINGS CALENDAR:
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THIS MORNING'S PRE-MARKET EARNINGS CALENDAR:
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EARNINGS RELEASES BEFORE THE OPEN TODAY:
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EARNINGS RELEASES AFTER THE CLOSE TODAY:
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YESTERDAY'S ANALYST UPGRADES/DOWNGRADES:
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YESTERDAY'S INSIDER TRADING FILINGS:
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TODAY'S DIVIDEND CALENDAR:
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THIS MORNING'S STOCK NEWS MOVERS:
(source: cnbc.com)
Walmart (WMT) – Walmart slumped 9.5% in the premarket after cutting its outlook for the current quarter and full year. The retail giant said higher prices for food and fuel are prompting consumers to cut back, and it’s had to cut prices at its stores to reduce excess inventory. Other retail stocks fell during premarket trading in the wake of the Walmart warning, including a 3.6% drop for Amazon (AMZN), 5.2% for Target (TGT) and 2.5% for Home Depot (HD).
STOCK SYMBOL: WMT
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General Motors (GM) – The automaker’s stock fell 3.7% in premarket trading after quarterly earnings fell short of estimates, though revenue was better than expected. GM also said it was preparing for an economic slowdown and hiring fewer people.
STOCK SYMBOL: GM
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Polaris (PII) – The recreational vehicle maker’s shares rallied 3.5% in premarket action after its quarterly profit beat Street forecasts, although revenue fell short. Polaris said supply chain issues and inflationary pressures eased during the quarter.
STOCK SYMBOL: PII
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3M (MMM) – 3M jumped 4% in the premarket following a flurry of news, including better-than-expected profit and revenue for the second quarter and the announcement that it would spin off its health care business.
STOCK SYMBOL: MMM
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General Electric (GE) – GE added 3.9% in the premarket after reporting much better than expected second-quarter profit and revenue. GE’s results were boosted by a strong recovery in its jet engine business.
STOCK SYMBOL: GE
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Raytheon Technologies (RTX) – The defense contractor reported second-quarter earnings that were better than expected, but revenue was slightly short of Wall Street forecasts. Raytheon said it is dealing with macroeconomic and supply chain challenges, but reaffirmed its full-year outlook. Raytheon fell 3.3% in the premarket.
STOCK SYMBOL: RTX
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Unilever (UL) – Unilever gained 2.3% in premarket action after raising its full-year sales forecast. Unilever – the seller of popular consumer brands like Dove Soap and Hellman’s mayonnaise – has been able to successfully raise prices to offset higher costs.
STOCK SYMBOL: UL
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UBS (UBS) – UBS tumbled 7.5% in the premarket after the Swiss bank reported a lower-than-expected quarterly profit. The bank’s bottom line was hurt by market turmoil which impacted its investment banking and wealth management businesses.
STOCK SYMBOL: UBS
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Whirlpool (WHR) – Whirlpool reported a quarterly loss, but its revenue and adjusted profit beat Wall Street forecasts. The overall loss was caused by the appliance maker’s exit from the Russian market. Whirlpool gained 1% in the premarket.
STOCK SYMBOL: WHR
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FULL DISCLOSURE:
/u/bigbear0083 has no positions in any stocks mentioned. Reddit, moderators, and the author do not advise making investment decisions based on discussion in these posts. Analysis is not subject to validation and users take action at their own risk.
DISCUSS!
What's on everyone's radar for today's trading day ahead here at r/stocks?
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