Wall Street’s main stock indexes were set to open lower on Tuesday as retailers Walmart and Home Depot delivered a double blow to traders returning after a long weekend amid worries that interest rates will remain higher for longer.
Walmart, the world’s largest retailer (WMT.N), shed 3.7% in premarket trading as it forecast full-year earnings below estimates and said consumers were likely to continue shopping for lower-priced items that could pressure its margins.
“Walmart is a bellweather for how the consumer is doing and the fact is that they envision that the consumer may be getting to that point of having to pull back,” said Art Hogan, chief market strategist at B Riley Wealth.
Home Depot (HD.N) dropped 4.0% as the home improvement chain forecast annual profit below estimates due to higher supply-chain costs and weak demand.
Smaller rival Lowe’s Cos Inc (LOW.N), which is expected to post results next week, was down 2.9%.
The U.S. stock market got a lift this year from its worst annual showing in more than a decade in 2022, as investors were hopeful that the central bank’s rate hiking cycle was nearing its end.
This report’s information was first seen on REUTERS; to read more, click this link.
