Stock Market Today: Walmart Inflation Woes Give Stocks a Scare
A profit warning from the nation''s largest retailer ahead of a busy stretch of corporate earnings sent stocks lower at the start of Tuesday''s trading, and the selling continued as the session wore on. Late Monday, Walmart ( WMT ) said that it now expects second-quarter earnings per share to be down 8% to 9% year-over-year and operating income to fall at least 13%, compared to May guidance for both metrics to be flat to up slightly. SEE MORE Best Airline Stocks to Buy Amid a Rocky Recovery "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. WMT stock slid 7.6% on the news – making it easily the worst-performing Dow Jones stock today – and other retailers like Target ( TGT , -3.6%) and Dollar Tree ( DLTR , -6.3%) fell in sympathy.
Stock Market Today: Walmart Inflation Woes Give Stocks a Scare
A profit warning from the nation''s largest retailer ahead of a busy stretch of corporate earnings sent stocks lower at the start of Tuesday''s trading, and the selling continued as the session wore on. Late Monday, Walmart ( WMT ) said that it now expects second-quarter earnings per share to be down 8% to 9% year-over-year and operating income to fall at least 13%, compared to May guidance for both metrics to be flat to up slightly. SEE MORE Best Airline Stocks to Buy Amid a Rocky Recovery "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. WMT stock slid 7.6% on the news – making it easily the worst-performing Dow Jones stock today – and other retailers like Target ( TGT , -3.6%) and Dollar Tree ( DLTR , -6.3%) fell in sympathy.