PARIS (Reuters) – The New York Stock Exchange opened lower on Tuesday, weighed down in particular by disappointing forecasts from Walmart and Home Depot as fears over interest rates affect the technology compartment.
In early trading, the Dow Jones index lost 243.62 points, or 0.72%, to 33,583.07 points and the broader Standard & Poor’s 500 fell 0.83% to 4,045.15 points.
The Nasdaq Composite lost 1.17%, or 137.43 points, to 11,649.83.
Walmart announced on Tuesday that it anticipates an annual profit forecast below expectations, the world’s largest retailer also being cautious about the evolution of consumption in the United States which could be affected by inflation. The title fell 1.67%, while its competitors Target, Macy’s and Costco Wholesale lost 1.63% to 2.10%
“Walmart is a (good) indicator of how the consumer will behave and there the group is considering that it will withdraw,” said Art Hogan, market strategist at B Riley Wealth.
Also in the retail sector, Home Depot reported a lower-than-expected full-year profit forecast amid rising costs and falling demand. The action yields 3.20%. The retail sector index on the S&P-500 dropped 0.3%.
The retail sector forecast contrasts with the latest macro data which showed resilience in the US economy, bolstering the prospect of a prolonged rise in interest rates as the Federal Reserve is keen to rein in demand. to curb high inflation.
Pending new data on PMI activity in the United States, scheduled for 2:45 p.m. GMT, the yield on ten-year Treasuries takes nearly nine basis points to 3.90%.
This weighs on technology and growth stocks like Apple, Amazon, Microsoft and Alphabet, which fell from 1.27% to 2.06%.
Meta Platforms stands out, however, with a gain of 2.52%, the parent company of Facebook having announced on Sunday that it is testing a paid service by subscription within the framework of certified accounts.
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(Written by Claude Chendjou, edited by Kate Entringer)
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