. Futures fall after Walmart warning spooks retail stocks

Futures fall after Walmart warning spooks retail stocks

26 Jul 2022

NASDAQ 100 is trading down 0.30% at 12292.74

U.S. stock index futures fell on Tuesday after Walmart (NYSE: WMT)’s profit warning rippled through the retail sector and heightened fears that consumers were cutting back on discretionary spending in the face of decades-high inflation.

Walmart Inc’s shares slumped 9.1% in premarket trading, while Target (NYSE: TGT) and Amazon.com (NASDAQ: AMZN) fell 5%, souring the mood as some of America’s biggest companies report in what is set to be the busiest week of the earnings season.

Along with high inflation, a stronger dollar is also expected to pressure the earnings of companies with sprawling global operations.

Investors are also bracing for a widely expected 75 basis-point rate hike by the Federal Reserve at the end of its two-day policy meeting, which gets underway later on Tuesday.

In other data, the Conference Board is expected to show its consumer confidence index likely dropped to 97.2 in July from 98.7 in the prior month.

At 6:50 a.m. ET, Dow e-minis were down 157 points, or 0.49%, S&P 500 e-minis were down 16 points, or 0.4%, and Nasdaq 100 e-minis were down 61 points, or 0.49%.

Among other Dow components, Coca-Cola (NYSE: KO) Co gained 1% after the company raised its full-year revenue forecast, while McDonald’s Corp (NYSE: MCD) beat quarterly comparable sales expectations, sending its shares up 0.2%.

3M Co rose 0.7% after the industrial giant said it plans to spin off its healthcare business. The company also reported a fall in second-quarter profit.

General Electric (NYSE: GE) Co rose 6% after the U.S. industrial conglomerate beat its revenue and profit estimates led by strong growth in its aviation business.

On technical fronts, NASDAQ 100 RSI stood at 56.15, and currently it is trading below 5 days MA & above 20 and 50 days MA. So, BUY position can be taken with the following target and stop loss:

TRADE SIGNAL – : NASDAQ 100 – BUY: 12293.24, TARGET: 12389.86, STOP LOSS: 12182.68