Wall Street closes lower

Tuesday 26 July 2022 22:08

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

US stocks closed lower on Tuesday. The S&P 500 fell 1.2 percent to 3,921.05 points, the Dow Jones index lost 0.7 percent to 31,761.54 points and the Nasdaq lost 1.9 percent to 11,562.57 points.

It was a busy day for investors. This afternoon saw a flurry of business results, and late Monday night Walmart issued a hefty profit warning.

“Investors responded 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 a third straight month in July and also fell more than expected. In addition, sales of new homes in the US fell in June.

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 intent last week, especially since financial markets had already priced in a bigger move,” Bank of America said.

Euro/dollar traded at 1.0128 on Tuesday evening. Oil prices fell on Tuesday. At a settlement of $94.98, a barrel of West Texas Intermediate was 1.8 percent cheaper.

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 lost 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 stock rose slightly.

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 lost more than 3 percent.

3M splits by giving the healthcare division its own IPO. 3M also lowered its annual outlook again. The stock rose around 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 rose around 3 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 stock rose almost 5 percent.

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 stock rose more than 1.5 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 rose slightly.

GM stock was also under pressure Tuesday after the automaker’s quarterly results were disappointing. The stock lost around 3.5 per cent.

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

Shopify stock is under pressure on Tuesday after the Canadian e-commerce company announced a reorganization. The stock fell 13 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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