The Dow Jones Industrial Average is down 440 points
Wall Street’s major stock indexes opened lower on Tuesday, as traders returning from a long weekend took a double whammy amid negative expectations from retailers Wal-Mart and Home Depot amid concerns that interest rates will remain high for longer.
The Dow Jones Industrial Average fell 440 points, or 1.3%, to 33,386.48 points.
The Standard & Poor’s 500 index fell 26.74 points, or 0.66%, to 4,052.35 points, according to Archyde.com.
The Nasdaq Composite Index fell 146.90 points, or 1.25%, to 11,640.37 points.
Walmart expects adjusted earnings to decline as much as 6.2% in the current fiscal year to a range of $5.9 to $6.0 per share.
This comes on the back of expectations of a slow recovery in demand as the Fed continues to raise interest rates.
Earnings forecasts from Walmart came in below Wall Street analysts’ estimates of $6.53 per share, on expectations of a slow recovery in demand as the Fed continues to raise interest rates.
On the other hand, Home Depot forecast a decline in earnings for the fiscal year, with plans to invest $1 billion in wages.
Home Depot expected earnings per share to decline by less than 9%, with sales growth remaining flat through January 2024.