Traders work on the floor of the New York Stock Exchange (NYSE), July 25, 2022.
Brendan McDermid | Reuters
Here are the most important information investors need to start their trading day:
US stock markets were to decline Tuesday morning after walmart cut its earnings outlook on Monday (see more below), sending shockwaves through the retail sector. Stocks have shown signs of life in recent weeks, but are still on shaky ground after a terrible first half. Major indexes were mixed on Monday, with the Dow Jones up, the S&P 500 effectively flat and the Nasdaq down. The busy schedule of results also continues. General Engines, McDonald’s and Coke all reported before the bell on Tuesday. Google parent Alphabet, Microsoft and Chipotle are expected to announce after market close. Investors will also be looking at new economic data on Tuesday morning: The Case-Shiller home price index for May will be released at 9 a.m. ET, while consumer confidence and new home sales data are expected to be released at 10 a.m. h.
Walmart Rollback pricing signs are displayed as customers shop during the grand opening of a new Wal-Mart store in Torrance, California.
Patrick Fallon | Bloomberg | Getty Images
Walmart, the largest retailer and grocer in the United States, has given people worried about a recession another reason to worry when he lowered his profit forecast after the Monday bell. Shoppers, the company said, were spending more on essentials like groceries, which typically have low profit margins, and avoiding items like electronics. Walmart, in turn, cuts prices for goods that pile up on shelves, such as clothing, which also hurts its bottom line. The company’s shares fell. The warning also weighed on other retailers, including Target and e-commerce giant Amazon. Shares of both companies decreased in non-market hoursas well.
The McDonald’s logo is seen on a restaurant in Arlington, Virginia on January 27, 2022.
Joshua Roberts | Reuters
Two major consumer companies released their quarterly results on Tuesday morning, giving investors a taste of how people are coping with high inflation. Coca Cola ahead of analysts’ estimates on its top and bottom results as it raised prices to offset higher costs on items such as freight, aluminum and corn syrup. McDonald’s, meanwhile, said comparable store sales increased 3.7% in the US, beating StreetAccount estimates of 2.8%. The rise was largely due to some price increases and the popularity of its value offerings, McDonald’s said.
Signs advertising Buick and GMC, brands owned by General Motors Company, are seen at a car dealership in Queens, New York, November 16, 2021.
andrew kelly | Reuters
General Motors released results on Tuesday that below Wall Street expectations. The Detroit automaker said parts shortages prevented it from shipping nearly 100,000 vehicles in the last quarter. The company, however, maintained its earnings outlook for the year. GM is also preparing for a possible recession, according to CEO Mary Barra. “We have also modeled numerous downside scenarios and stand ready to take deliberate action when and if needed,” she said in a statement. Crosstown Rival Ford is expected to report results after the bell on Wednesday.
Federal Reserve Chairman Jerome Powell reacts during testimony before a Senate Banking, Housing, and Urban Affairs Committee hearing on the ‘Semi-Annual Report on Monetary Policy to Congress’, on Capitol Hill in Washington, DC , USA, June 22, 2022.
Elizabeth Frantz | Reuters
Even as they digest a slew of earnings reports this week, investors will be locked in what the Fed said on Wednesday afternoon, following its two-day meeting. Most expect the central bank to hike rates by 75 basis points (each basis point equals 0.01 percentage points), but with inflation still on the rise, market watchers are looking for clues on what President Jerome Powell and his fellow policymakers will do next. “I think it’s going to be a mixed bag. He’s going to talk ahead of what could be another quarter of a decline in real GDP,” Vincent Reinhart, chief economist at Dreyfus and Mellon, told CNBC.
CNBC’s Sarah Min, Melissa Repko, John Rosevear, Amelia Lucas and Ian Krietzberg contributed to this report.