Stocks fell on Tuesday after investors digested disappointing earnings reports from Walmart
Here's how the market settled on Tuesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Investors turned their attention to Walmart's earnings report on Tuesday, with the retail giant cutting its quarterly and full-year profit estimates due to inflationary pressures impacting consumer spending.
"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," Walmart CEO Doug McMillon in a press statement on Monday. "We're not anticipating more pressure on general merchandise in the back half; however, we're encouraged by the start we're seeing on school supplies in Walmart U.S."
Walmart shares fell 8% on Tuesday and pulled other retailers like Amazon
General Motors was also in the spotlight on Tuesday. The car maker reported second quarter earnings that missed earnings before market open, citing supply chain disruptions that ultimately made the company unable to ship nearly 100,000 vehicles by the end of the quarter.
However, GM maintained its previous earnings guidance for the full year and expects to increase production in the second half of the year.
Elsewhere, Shopify
"It's now clear that bet didn't pay off," CEO Tobi Lutke said in a memo to staff on Tuesday. "What we see now is the mix reverting to roughly where pre-COVID data would have suggested it should be at this point."
Investors are anxiously anticipating the Federal Reserve's new monetary policy decision due out Wednesday afternoon. Wall Street is expecting another 75 basis point rate hike, and investors will be looking for clue on policymaker's outlooks for future interest rates.
Market participants are also looking ahead towards the Commerce Department's initial estimates for second quarter GDP growth due Thursday. If the report shows another quarter of loss, the U.S. will be within the technical definition of a recession--which is two consecutive quarters of contraction.
However, President Joe Biden said Monday he does not this the United States will experience a recession when in the face of decades-high inflation.
"We're not going to be in recession, in my view," Biden said. "The unemployment rate is still one of the lowest we've had in history. It's in the 3.6% area. We still find ourselves with people investing."
After the bell, second quarter earnings reports from Microsoft
