The Dow fell more than 100 points today, hurt by Walmart lowering its earnings forecast for this year.
In addition, investors are worried regarding the recession. After the International Monetary Fund (IMF) announced a reduction in global economic growth forecasts.
At 9:02 pm Thai time, the Dow Jones Industrial Average stood at 31,863.31 points, minus 126.73 points or 0.4%.
Walmart, Inc.’s share price fell more than 8 percent following the company cut its earnings forecast for this year.
The decline in Walmart shares has also dragged retail stock prices down today.
Walmart, the largest US retailer It is considered a company that can reflect the overall picture of the US economy, said it lowered its earnings forecast for the second quarter and full year 2022 as inflation is driving consumers to cut spending on clothing and accessories. use electricity and turn to spending only on essential goods such as food
Walmart predicts that Earnings per share for the second quarter will fall by 8-9%, and earnings per share in fiscal 2022 will fall by 11-13% from the previously expected earnings per share in the second quarter of a slight increase. And earnings per share in 2022 will drop only 1%.
Walmart is scheduled to release its second-quarter results on Aug. 16.
Investors eyeing Alphabet’s earnings release and Microsoft following the market is closed today
The International Monetary Fund (IMF) has cut global growth forecasts for 2022 and 2023, warning that the global economy is likely to enter a recession. amid rising inflation risks The worse-than-expected slowdown in China’s economy including the impact of the Russian military invasion of Ukraine
The IMF released its World Economic Outlook report today. The global economy will grow 3.2 percent in 2022 before slowing to 2.9 percent in 2023, down 0.4% and 0.7%, respectively, from the April forecast.
The IMF cut its forecast for US economic growth to 2.3 percent in 2022 and 1.0 percent in 2023, while China’s economy is expected to grow 3.3 percent this year, its lowest level in 40 years, and cut its forecast. India’s economy is projected to 7.4 percent this year.
Markets are keeping an eye on the Federal Reserve’s (Fed) monetary policy meeting that starts today and finishes tomorrow. The Fed is expected to raise interest rates by 0.75% at this round of meetings.
The U.S. Commerce Department will release its first estimate for second-quarter gross domestic product (GDP) on July 28, following previously revealing that GDP shrank 1.6 percent in the first quarter.
A Dow Jones News poll said analysts expected the U.S. economy to grow 1 percent in the second quarter.
However, the Federal Reserve Bank of Atlanta said its latest GDPNow forecast model shows that The US economy contracted 1.6 percent in the second quarter, from a 1.5% contraction on July 15.
GDPNow forecasts show the US economy contracted 1.6% in both the first and second quarters, indicating that the US meets the definition of a recession. because the economy contracted for 2 consecutive quarters
The Atlanta Fed will report new GDPNow forecasts on July 27, before the US Department of Commerce releases second-quarter GDP figures on July 28.
