Di Liz Moyer
Investing.com – Wall Street opens lower on Walmart’s gloomy outlook for 2023.
At the time of writing, the is down 372 points or 1.1%, while the is down 1% and 1.2%.
Walmart Inc (NYSE:), the largest US retailer, forecast full-year earnings lower than estimates. Consumers are hunting for bargains and this could put pressure on its margins. Walmart shares are down 1.3%.
Also Home Depot Inc. (NYSE:) released a lower-than-expected profit forecast due to rising supply chain costs and weak demand. Home Depot shares plunge more than 5%.
Investors hoped that the retail earnings could provide hope that the Federal Reserve was nearing the end of its interest rate hike policy. That hope has sent stocks soaring this year, especially tech stocks.
But recent inflation data has highlighted still strong trends. The market believes the Fed will raise rates another quarter of a percentage point when it meets in March and then again in May.
Tomorrow, the Fed will release the minutes of its meeting earlier this month, giving investors another chance to analyze the words of Fed officials to understand where interest rates are headed.
This week’s economic data includes another reading on gross domestic product for the fourth quarter, data on per capita income and spending, and the Fed’s preferred measure of inflation, the core PCE index, all expected on Friday .
Oil goes at two speeds. Prices rose 0.7% to 77.13 dollars a barrel, while prices fell 0.4% to 83.72 dollars a barrel. The are down 0.3% to $1844.