(CercleFinance.com) – The New York Stock Exchange should open lower on Tuesday morning at the end of a three-day weekend, weighed down in particular by the decline in Walmart after forecasts deemed too cautious.
Half an hour before the opening, the futures contracts on the major New York indices lost between 1% and 1.2%, announcing a sharp decline in the first exchanges.
The retail sector, already lagging since the start of the year, is expected to continue to suffer following the disappointing publication from Walmart, which is raising concerns about the health of the sector and consumption as a whole.
The world’s number one retailer is expected to fall by almost 3% after delivering quarterly results that beat expectations, but unveiled weaker-than-expected prospects.
The decline of Walmart should bring in its wake other values in the sector, such as Target or Costco.
The market is also ignoring the better-than-expected results of the DIY specialist Home Depot, whose share price fell nearly 4% in pre-opening in the wake of forecasts deemed disappointing.
After a fanfare start to the year, the US stock market has been on a bumpy ride since the beginning of February, with some analysts now deeming stocks ‘overbought’ after their recent bull run.
Following the release of stronger than expected inflation data, the S&P 500 index fell by 0.2% over the past week.
The markets seem to want to digest their recent gains while waiting for a little more clarity on the evolution of inflationary pressures and the Fed’s monetary policy.
The tensions observed at the level of bond yields also continue to weigh on the trend.
While the market must absorb several auctions this week, the yield of 10-year Treasuries is hovering around 3.89%, against a peak of more than 3.90% on Friday.
Risk aversion benefited the dollar, which rose 0.2% against the euro, which returned to trade around 1.0660 against the greenback, the strengthening of the greenback not preventing US light crude from rise 0.2% to 76.9 dollars.
The American financial centers had remained closed yesterday because of ‘Washington’s Birthday’.
Copyright (c) 2023 CercleFinance.com. All rights reserved.