Indexes drop as Walmart profit warning spooks investors



(For a Reuters live blog on U.S., UK and European stock markets, click

or type LIVE/ in a news window.)

* Walmart cuts profit forecast; news hits retailers

* McDonald's up as sales, profit top estimates

* Coca-Cola up on forecast raise

* Indexes: Dow down 0.7%, S&P 500 down 1.2%, Nasdaq down 1.9% (New throughout, updates with official closing prices, volume, Microsoft down after the bell, Alphabet up)

By Caroline Valetkevitch

NEW YORK, July 26 (Reuters) - U.S. stocks ended sharply lower Tuesday as a profit warning by Walmart dragged down retail shares and exceptionally weak consumer confidence data also fueled fears about spending.

Walmart WMT.N shares sank 7.6% after the retailer cut its full-year profit forecast late on Monday. Walmart blamed surging prices for food and fuel, and said it needed to cut prices to pare inventories.

Shares of Target Corp TGT.N fell 3.6% and Amazon.com Inc AMZN.O dropped 5.2%, while the S&P 500 retail index .SPXRT declined 4.2%.

On Tuesday, data showed U.S. consumer confidence dropped to nearly a 1-1/2-year low in July amid persistent worries about higher inflation and rising interest rates.

"The majority of companies that reported today beat (on) earnings, and that's been the case. But of course there have been some warnings, and that's what the market is focusing on," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

Amazon, which said it would raise fees for delivery and streaming service Prime in Europe by up to 43% a year, was the biggest drag on the Nasdaq and S&P 500, while consumer discretionary .SPLRCD fell 3.3% and led declines among S&P 500 sectors.

The Federal Reserve started a two-day meeting, and on Wednesday it is expected to announce a 0.75 percentage point interest rate hike to fight inflation. Investors have worried that aggressive interest rate hikes by the Fed could tip the economy into recession.

The Dow Jones Industrial Average .DJI fell 228.5 points, or 0.71%, to 31,761.54, the S&P 500 .SPX lost 45.79 points, or 1.15%, to 3,921.05 and the Nasdaq Composite .IXIC dropped 220.09 points, or 1.87%, to 11,562.58.

A busy week for earnings also included reports from Alphabet Inc GOOGL.O and Microsoft Corp MSFT.O after the bell.

Shares of Microsoft were down 0.5% in after-hours trading while Alphabet was up 3% following the companies' results. Microsoft ended the regular session down 2.7% and Alphabet ended 2.3% lower on the day.

Investors had been looking to see if this week's earnings news from mega-cap companies might help the stock market sustain its recent rally.

Earnings from S&P 500 companies were expected to have risen 6.2% for the second quarter from the year-ago period, according to Refinitiv data.

Also during the regular session, Coca-Cola Co KO.N gained 1.6% after the company raised its full-year revenue forecast. McDonald's Corp MCD.N rose 2.7% after beating quarterly expectations.

3M Co MMM.N rose 4.9% after the industrial giant said it planned to spin off its healthcare business. General Electric Co GE.N gained 4.6% after the industrial conglomerate beat revenue and profit estimates.

In other outlooks, the International Monetary Fund cut global growth forecasts again.

Volume on U.S. exchanges was 9.60 billion shares, compared with the 10.93 billion average for the full session over the last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a 1.73-to-1 ratio; on Nasdaq, a 1.72-to-1 ratio favored decliners.

The S&P 500 posted 1 new 52-week highs and 30 new lows; the Nasdaq Composite recorded 39 new highs and 138 new lows.
Additional reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur, Anil D'Silva and David Gregorio

Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.

Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.

Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.

Gumagamit kami ng cookies para mabigyan ka ng mahusay na karanasan sa aming website. Magbasa pa o palitan ang iyong cookie settings.

Babala sa Risk: Maaaring malugi ang iyong kapital. Maaaring hindi nababagay sa lahat ang mga produktong naka-leverage. Mangyaring isaalang-alang ang aming Pahayag sa Risk.