Holiday hangover? On the first day of trading after US bank holiday, a deflated performance as the three major market indicators broke their six days of session gains closing lower on Tuesday. Walmart exerted the biggest downward pull on the Dow as shares plummeted -10.18% following its lower-than-expected profits and a sharp decline in online sales growth over the holiday period.
In a mixed session, the Dow Jones industrial average dropped 236 points to 24,970.08 - a decline of -1.03% with only three out of 30 members adding gains. The sell off a vivid reminder that volatility is the new normal. Sparking volatility were the climbing rates on issued US debt - $179bn of securities. The sale of short-term three- and six-month T-Bills and two-year notes drew highest rates in ten years.
Technology was outweighed by sector losses including consumer staples -2.25%, telecommunication services -1.72% and utilities -1.26%. S&P 500 index fell -0.58% and tech bellwether, Nasdaq, drifted -0.07%. Walmart shares took a cut today and other retailers bled, Gap fell -4.96%, Kroger -4.22% and Target -2.96%. Today’s sector gainer was technology up +0.25%. Nvidia gained +2.15%, Intel and Microsoft rose +1.67% and +0.78% respectively.
- Dow 24,957.56 -1.03%
- S&P 500 2,716.26 -0.58%
- Nasdaq 7234.31 -0.07%
- Russell 2000 1,530.63 -0.84%
- NYSE Composite 12,771.84 -0.80%
- Gold 1,332.0 -1.78%
- Oil WTI $61.77 +0.15%
Gold slid -1.78% to $1,332 per ounce and the dollar gained. West Intermediate crude bounced back to its highest in two weeks.
Walmart shares slump
Walmart online sales growth stalled and profit margins were under pressure according to its CEO, Doug McMillon, from "operational challenges".
The giant US retailer said its total Q4 revenue was $136.3bn, a 4.1% increase. Excluding currency, total revenue was $135.1bn, an increase of $4.1bn, or 3.1%.
Its eCommerce sales and GMV at Walmart US increased 23% and 24%, respectively. However, consolidated operating income was $4.5bn, a decrease of 28%. Adjusted-per-share earnings were $1.33 below consensus estimates of $1.37.