Dow Jones, S&P 500 Drop; Walmart Falls On Lowered Profit Outlook; Microsoft & Alphabet Earnings On Deck

Stock Market Today Mid-Morning Market Updates

On Tuesday morning, the Dow Jones Industrial Average is down over 114 points. This comes on the heels of mixed second-quarter earnings and revised guidance by top companies like Walmart (NYSE: WMT). The retail giant cut its profit outlook for the second quarter and full year 2022 fiscal. Shares of WMT stock are down over 8% on Tuesday. Also, big tech earnings will begin Tuesday after market close. The Federal Reserve’s two-day meeting starts Tuesday. As previously mentioned on, this will be the busiest and arguably the most important week of corporate earnings investors will get all year. With items such as interest rates, GDP data, and earnings from roughly a third of the entire S&P 500, it’s no surprise investors are watching the stock market news headlines closely on Tuesday.

Earnings on Tuesday morning from top companies such as General Motors (NYSE: GM) and Mcdonald’s (NYSE: MCD) are also noteworthy. Shares of GM stock dropped 2.78% on Tuesday morning. GM stock is currently trading at $33.51 per share. In the earnings report, General Motors reported earnings of $1.14 per share on revenue of $35.8 billion for the second quarter. Wall Street’s consensus earnings estimate was $1.39 per share on revenue of $37.2 billion. While MCD stock is moving higher on Tuesday. MCD stock is up 1.72% at $254.82 a share. This comes following the company releasing its second-quarter 2022 fiscal results. In detail, McDonald’s (MCD) reported earnings per share of $2.55 on revenue of $5.7 billion. Compared to Wall Street’s consensus earnings estimate of $2.45 per share on revenue of $5.9 billion.

Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are down by 0.97% on Tuesday, while Microsoft (NASDAQ: MSFT) is also down by 2.20%. Meanwhile, shares of Home Depot (NYSE: HD), and Nike (NYSE: NKE) shares are trading down on Tuesday. Among the Dow financial leaders, shares of Visa (NYSE: V) and Goldman Sachs (NYSE: GS) are also trading lower during Tuesday morning’s trading session.

Shares of EV leader Tesla (NASDAQ: TSLA) are down Tuesday by 1.98% at $789.32 per share. Rival EV companies like Rivian (NASDAQ: RIVN) are also trading down by 2.98%. Lucid Group (NASDAQ: LCID) dropped 3.04% on Tuesday. Chinese EV leaders like Nio (NYSE: NIO) and Li Auto Inc. (NASDAQ: LI) are both trading lower on Tuesday.

Dow Jones Today: U.S. Treasury Yield Drops To 2.75%; Two-Day Fed Meeting Begins

Following the stock market opening on Tuesday, the major indices opened lower. The S&P 500 & Dow and Nasdaq are trading lower at 0.86%, and 0.36%, and 1.444%, respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) has declined by 1.41% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is down by 0.81%. The benchmark 10-year U.S. Treasury yield is at 2.75% during Tuesday’s early morning trading session.

Moving on, the Federal Reserve will kick off its two-day meeting on Tuesday. The consensus estimates on the street is the Fed will increase interest rates by 75 basis points. That announcement will be reported on Wednesday. It’s important to highlight, that this is the last Fed meeting till September. This means Fed Chair Jerome Powell’s news conference on Wednesday will take center stage in the stock market this week.

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Walmart Stock Drops After Lowering Profit Outlook For The Second Quarter & Full Year 2022

WMT stock is in the headlines early Tuesday morning as shares fell over 8% in early morning trading. This comes following the company releasing an update Monday afternoon, lowering its profit outlook for the second quarter and full year. Walmart lowered its outlook due to persistent inflation and inventory woes.

The retail giant now estimates operating income for the second quarter and full year to decline from 13% to 14% and 11% to 13%, respectively. Next, WMT reported that adjusted earnings per share are expected to drop from 8% to 9% and 11% to 13%, over the same time period the previous year. Meanwhile, WMT had its projected EPS to be “flat to up slightly” for Q2 and to fall only 1% when it reported in May.

Walmart CEO Doug McMillon stated, “The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars.” As of Tuesday morning after the opening bell shares of WMT are trading down over 8% at $120.68 a share.

WMT Stock chart
Source: TD Ameritrade TOS

Coca-Cola Stock Gains On Second Quarter Fiscal Earnings

Next up, beverage giant Coca-Cola (NYSE: KO) is in the headlines on Tuesday morning. The company released its second quarter fiscal earnings on Tuesday morning. In detail, Coca-Cola reported earnings per share of $0.70 on revenue of $11.3 billion. This is compared to Wall Street’s consensus earnings estimate of earnings per share of $0.67 on revenue of $10.6 billion.

Furthermore, KO estimates a full-year 2022 fiscal earnings of $2.44 to $2.46 per share. Previously, Coca-Cola reported guidance of earnings per share of $2.51 to $2.55. All while, Wall Street’s consensus earnings estimate is $2.46 per share for the full year 2022 fiscal year. As a result, KO stock is trading higher by 1.78% at $63.31 per share.

The company’s Chairman and CEO James Quincey had this to say in the report to shareholders, “Our results this quarter reflect the agility of our business, the strength of our streamlined portfolio of brands, and the actions we’ve taken to execute for growth in the face of challenges in the operating and macroeconomic environment.

KO stock chart
Source: TD Ameritrade TOS

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Alphabet & Microsoft Earnings On Tap After The Closing Bell

To round this out, almost 175 companies in the S&P 500 are expected to report earnings in the stock market this week. As of result, this amounts to almost 50% of the index’s total market capitalization.

Without a doubt, this is the busiest week of the second-quarter earnings season with big tech earnings set to come out Tuesday after the market closes. To start us off, Alphabet (NASDAQ: GOOG) reports on Tuesday after market close. Following that, we have Microsoft and Visa who also report after market close on Tuesday.

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Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 |