Wall Street is trading lower

Tuesday 26 July 2022 19:30

This article contains information about: 3M, Coca-Cola, Dow Inc., Mc Donald’s, United Parcel Service,

US stocks are trading lower on Tuesday with a few hours of trading remaining. The S&P 500 fell 1.0 percent to 3,929.02 points, the Dow Jones index fell 0.3 percent to 31,888.29 points and the Nasdaq fell 1.7 percent to 11,586.11 points.

It’s a busy day for investors. This afternoon already saw a flurry of corporate earnings, and late Monday evening Walmart issued a hefty profit warning.

“Investors are responding to Walmart’s warning,” said AvaTrade market analyst Naeem Aslam. Walmart paints a depressed picture for the US economy.

Concerns about a recession are also fueled by the IMF’s growth cut and disappointing US consumer confidence. Consumer confidence as measured by the Conference Board fell for the third consecutive month in July.

After hours, a few big tech companies are on the agenda to open the books and the market is also preparing for the Federal Reserve’s interest rate decision.

The Fed is expected to raise key interest rates by 75 basis points on Wednesday, just as it did in June.

“If the Fed was inclined to raise interest rates by 100 basis points in July, we think it likely would have expressed its intention last week, especially as financial markets had already priced in a bigger move,” Bank of America said.

Euro/dollar traded at 1.0128 on Tuesday evening. WTI oil costs around $96.

Company news

Walmart has warned that high food and fuel prices are fueling consumer resentment and expects profits to be lower this year. Walmart expects that the adjusted earnings per share will fall 8 to 9 percent in the second quarter and to be 11 to 13 percent for the full fiscal year. The chain previously assumed a profit drop of one percent this year. The share loses 7.5 per cent.

NXP achieved higher results in the second quarter, and sales will also increase in the current quarter, the chip giant predicts. The share rises 1.5 per cent.

United Parcel Service performed better than expected in the second quarter of 2022 and decided to buy $3 billion of its own stock instead of $2 billion. UPS loses 4 percent.

3M splits by giving the healthcare division its own IPO. 3M also lowered its annual outlook again. The share rises 6.5 per cent.

McDonald’s sales fell slightly in the latest quarter despite an increase in menu prices in the United States, but adjusted profit rose, and more than expected. The stock rises 3.5 per cent.

General Electric had slightly more revenue in the second quarter of 2022, and its sharply increased adjusted profit came in significantly higher than analysts had predicted. The share rises 6.5 per cent.

The Coca-Cola Company achieved significantly more revenue than expected in the second quarter of 2022, and profits were also slightly better. Cessation of Russian activities will cost slightly less than previously expected. The share rises 2.5 per cent.

Kimberly-Clark has again raised its full-year revenue expectations in its second-quarter results. The manufacturer expects annual revenue to increase organically by 5 to 7 percent. The company had previously expected growth of 4 to 6 percent. The stock falls slightly.

GM shares are also under pressure on Tuesday after the automaker’s quarterly results were disappointing. The share loses 2.5 per cent.

Alibaba plans to move its primary listing from the NYSE to Hong Kong. The stock rises slightly.

Shopify stock is under pressure on Tuesday after the Canadian e-commerce company announced a reorganization. The stock falls 15 per cent.

The 3M share price is traded live at € * with a difference %. Today’s highest price is € * with the low of € *.

The Coca-Cola share price is traded live at € * with a difference %. Today’s highest price is € * with the low of € *.

Mc Donald’s share price is traded live at € * with a difference %. Today’s highest price is € * with the low of € *.

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