NEW YORK, July 26 — Wall Street stocks fell early today after an earnings warning from Walmart exacerbated recession worries on the eve of a key Federal Reserve decision.
The world’s biggest retailer trimmed its profit forecast to reflect increased consumer spending for food, gasoline and other staples that is depressing demand for goods with higher profit margins.
Shares of Walmart, a Dow component, plunged 8.5 per cent in early trading, overshadowing a heavy day of other earnings.
Meanwhile, the Fed was set to start a two-day monetary policy meeting expected to result in another hefty interest rate hike. Analysts fear the hikes could depress consumer activity.
About 45 minutes into trading, the Dow Jones Industrial Average was down 0.3 per cent at 31,882.94.
The broad-based S&P 500 fell 0.7 per cent to 3,940.11, while the tech-rich Nasdaq Composite Index tumbled 1.2 per cent to 11,646.01.
Among other companies reporting results, Coca-Cola gained 2.2 per cent; General Electric won 5.4 per cent; General Motors fell 3.7 per cent; McDonald’s gained 1.8 per cent; and UPS shed 3.3 per cent.
In other news, the International Monetary Fund downgraded its economic outlook for this year and next due to accelerating inflation and the sharp slowdowns in China and the United States.
In its latest World Economic Outlook, the IMF cut the 2022 global GDP estimate to 3.2 per cent, four-tenths of a point lower than the April forecast, and about half the rate seen last year. — AFP
