U.S. stock futures slip after Walmart profit warning

U.S. stock index futures edged lower Tuesday, hurt by Walmart cutting profit guidance ahead of a wave of corporate earnings reports this week.

What’s happening
  • Futures on the Dow Jones Industrial Average
    YM00,
    -0.37%

    fell 113 points, or 0.4%, to 31854.

  • Futures on the S&P 500
    ES00,
    -0.34%

    dropped 9.75 points, or 0.3%, to 3960.

  • Futures on the Nasdaq 100
    NQ00,
    -0.41%

    decreased 38 points, or 0.3%, to 12317.

On Monday, the Dow Jones Industrial Average
DJIA,
+0.28%

rose 91 points, or 0.28%, to 31990, the S&P 500
SPX,
+0.13%

increased 5 points, or 0.13%, to 3967, and the Nasdaq Composite
COMP,
-0.43%

dropped 51 points, or 0.43%, to 11783.

What’s driving markets

Walmart
WMT,
-0.14%

late Monday cut its profit outlook, saying inflation on food has caused it to conduct more markdowns in apparel. The opposite side of that coin was Unilever
UL,
+0.26%
,
as the maker of Hellmann’s mayonnaise and Ben & Jerry’s ice cream said price rises were able to offset reduced volume.

“It was a steady start for most markets to a big earnings week, until Walmart issued a warning after hours. The stock lost 10% and there was negative read-across for the rest of the U.S. consumer sector,” said Ian Williams, strategist at U.K. broker Peel Hunt.

A massive slate of earnings includes McDonald’s,
MCD,
-1.42%

General Motors
GM,
-0.43%
,
Coca Cola
KO,
+0.97%
,
and after the close, tech titans Alphabet
GOOGL,
-0.36%

and Microsoft
MSFT,
-0.59%
.

The Federal Reserve starts its two-day interest-rate-setting meeting Tuesday, and the U.S. economic calendar also includes the S&P Case-Shiller May house price index, the Conference Board July consumer confidence, and June new-home sales reports.

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