Dow snaps win streak as Walmart weighs on market
The Dow and S&P 500 snapped a six-day winning streak Tuesday, as disappointing Walmart (NYSE:WMT) earnings weighed on stocks.
The Dow Jones Industrial Average lost 254.63 points, or 1.01%, to 24,964.75. The S&P 500 dropped 15.96 points, or 0.58%, to 2,716.26. The Nasdaq Composite fell 5.16 points, or 0.07%, to 7,234.31.
U.S. stocks are coming off a strong week in which the Dow recovered approximately half of the losses it amassed since hitting a January peak. But volatility returned Tuesday, igniting a sell-off that accelerated into the closing bell. Walmart, which belongs to the 30-member Dow, reported slower online sales growth and a quarter profit that missed analysts’ expectations. Walmart’s 10.2% decline took 74 points off the Dow.
Equity investors are closely watching bond yields, which ticked higher Tuesday. The yield on the benchmark 10-year Treasury note climbed as high as 2.926% on the day.
Market participants are also awaiting Wednesday’s release of minutes from the Federal Reserve’s January policy meeting. Investors will closely digest any commentary on the central bank’s thoughts on interest rates and inflation. The January policy-setting meeting was the last chaired by Janet Yellen as she handed over the reins to Jerome Powell.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WMT | WALMART INC. | 92.50 | +0.62 | +0.67% |
The CBOE Volatility Index, Wall Street’s “fear gauge” and a measure of price swings in the market, rose 5.14% to 20.46 in afternoon trading.
Gold fell 1.78% to $1,332 an ounce in recent trading.
West Texas Intermediate crude rose 22 cents, or 0.4%, to $61.90 a barrel.
In other corporate news, shares of Chipotle Mexican Grill (NYSE:CMG) rallied 3.8% as incoming CEO Brian Niccol fuels hopes of a turnaround. Analysts at Stifel Nicolaus upgraded Chipotle’s stock to “hold” and raised their price target.