© Reuters
Investing.com – The US market started the week on a strong decline for the major indices, after yesterday’s President’s Day holiday.
The positivity of the US PMI data deepened the US markets’ expectations of the US Federal Reserve continuing to adopt a high monetary policy, which may reach levels of 5.50% in the June meeting, according to the current expectations of the Fed’s follow-up tool.
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markets now
It fell by 1.13%, to record 11,649.18 points, while it fell by 1.12%, to 33,448.76, losing 377.93 points in the first trading hours, and it also fell by 1.09%, to record $4,034.70.
On the other hand, the returns for 10 Heavens rose to the highest level since last November, reaching 3.931%, an increase of 2.69% in today’s session.
Treasury yields for two years rose by 1.97% to 4.7140%, which is an indication of higher expectations of a rate hike by the US Federal Reserve.
It now records 104,120 against a basket of six foreign currencies, most notably an increase of 0.32%. Thus, the US dollar index is trading at the highest level in the last 6 weeks.
It fell to $1,844.35, down by 0.33%, while futures contracts rose to $21,800 an ounce, up by 0.37%.
The most important reasons for the decline…the fall of retailers
Two of the retail giants on Wall Street announced today their quarterly results, which were positive, but their future (indicative) expectations revealed fear of a decline in consumer spending margin and its impact on them, which prompted a selling campaign for shares and their decline in pre-opening and post-opening trading.
Wal-Mart.. success and fall
Today, the retail giant Wal-Mart announced its quarterly results for the fourth quarter of the last year, and it achieved better-than-expected results for this period, but that did not help the stock, which fell sharply in pre-opening trading and continued to decline with the opening, due to the fact that the hawks waited for instructions more powerful and optimistic guidelines for the future, but that did not happen.
Wal-Mart reported earnings per share of $1.71 on revenue of $164 billion, easily ahead of consensus on earnings of $1.52 per share on sales of $159.8 billion. Revenue increased 7.3% with US comparable sales, excluding gas, growing 8.8%. The company said e-commerce growth was 17% and 18% on the two-year stack.
This quarter, Walmart sees EPS in the range of $1.25-$1.30 while sales are expected to grow 4.5-5%. Analysts expected earnings of $1.36 per share. For 2023, WMT forecasts EPS in a range of $5.90-6.05, which is a big mistake compared to the consensus of $6.50. Full year sales are seeing an increase of 2.5-3%.
Goldman Sachs (NYSE: ) analysts focused positively on Wal-Mart’s results and noted that the lower-than-expected forecast is “driven mostly by one-time effects and bottom-line items.”
“We expect the stock to trade lower today given lower-than-expected fiscal ’23 guidance,” they said in a note to clients.
Home Depot (NYSE:)
Home Depot also forecast weaker-than-expected annual earnings on Tuesday as higher prices hit demand for home improvement products.
stock movement
Home Depot shares fell 5.48% to $300.53, a loss of $17.7, and Bath & Body shares fell 5%, to $40.75 per share.
While Wal-Mart shares managed to rise after the opening, as they are now up 0.44%, to $147.19. Despite its decline in pre-opening trading.
Tesla (NASDAQ:) shares fell by 2.17% to $203.8, Amazon (NASDAQ:) shares fell by 2.47%, to record $94.77, Intel (NASDAQ:) shares fell by 3.31%, and Ford (NYSE:) shares fell by 2.83%.
Meanwhile, Facebook Meta shares (NASDAQ:) rose by 0.33% to $173.44.
