Dow, Nasdaq Futures Sharply Lower After Retail Earnings


Home Depot and Walmart shared dismal forecasts for 2023

Stock futures are pointed lower, as traders return from the President’s Day holiday, with dismal forecasts from Home Depot (HD) and Walmart (WMT) dampening sentiment. After popping last week amid hot inflation data and Fed fatigue, treasury yields are once more on the rise. At last check, Dow Jones Industrial Average (DJIA) and Nasdaq-100 Index (NDX) futures are indicating a triple-digit drop, while futures on the S&P 500 Index (SPX) look to move sharply lower as well.

Continue reading for more on today’s market, including:.

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.5 million call contracts and 1 million put contracts traded on Friday. The single-session equity put/call ratio rose to 0.67 and the 21-day moving average stayed at 0.79.
  2. Home Depot Inc (NYSE:HD) earlier announced worse-than-expected fourth-quarter revenue, which cast a shadow on its profit win. The company also shared a disappointing 2023 outlook, with sales expected to be flat. HD is down 3.8% ahead of the open, and carries a 8.6% year-over-year deficit.
  3. Walmart Inc (NYSE:WMT) was last seen down 3.5% premarket, after the company’s full-year earnings forecast missed estimates. Walmart noted its efforts to attract consumers amid high inflation could squeeze profit margins. In the last nine months, WMT has added nearly 23%.

  4. Truist Securities downgraded Generac Holdings Inc. (NYSE:GNRC) to “hold’ from “buy” this morning. The analyst in question said a combination of higher interest rates and surging prices may threaten its financials this year. GNRC has shed 58.1% year-over-year. 

  5. Today brings existing home sales, as well as the flash services purchasing managers’ index (PMI) and the manufacturing PMI. 

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European Markets Dip Amid Russia Tensions

Asian markets settled on both sides of the aisle on Tuesday. Hong Kong’s Hang Seng led the losses with a 1.7% drop, as tech stocks weighed on the benchmark, while Japan’s Nikkei shed 0.2%. South Korea’s trade deficit for February narrowed to $6 billion, while its exports to China fell 22.7%. The South Korean Kospi inched 0.2% higher, while China’s Shanghai Composite added 0.5%.

European markets are moving lower at last check, as investors eye tensions between Russia and Ukraine. Meanwhile, the U.K. reported a surprise budget surplus for January. London’s FTSE 100 and the French CAC 40 are both down 0.3%, while the German DAX is off 0.4%.