U.S. Stock Futures Tumble as Big-Box Retailers Post Disappointing Earnings
U.S. stock futures were in a downswing Tuesday morning to start a busy holiday-shortened week of trading as investors weighed earnings let downs from big-box retailers Walmart and Home Depot. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) were down 1.24%, 0.90%, and 0.67%, respectively, as of 4:15 a.m. Tuesday EST. These losses deepened over the course of the day: The Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) were down 1.7%, 1.4%, and 1.4%, respectively, as of 10:28 a.m. Tuesday EST. At 18:40 Eastern Time (23:40 Greenwich Mean Time), Dow Jones futures had decreased by 0.1%, while S&P 500 futures and Nasdaq 100 futures had both dropped by 0.2%.
The yield of the 10-year Treasury increased by 6 basis points, reaching 3.89%. The 10-year Treasury note yield (TNX) also rose moderately to 3.88%. This follows an earlier intraday high of 3.93%, the highest since November and approaching the 4% level. A thirty-year bond dropped to its lowest point in seven weeks CME FedWatch puts the chances of a 0.25% rate hike at the March meeting at 76%.
Tuesday morning, prior to the market opening, Home Depot's stock experienced a 4% decrease in value. The home improvement retailer reported fiscal fourth-quarter results for the period ending Jan. 29 that showed the extent to which its growth has slowed, and investors reacted negatively to Home Depot’s expectations that 2023 could prove to have even more difficult business conditions ahead. On Tuesday, Walmart stock decreased by 4% in premarket trading. The mammoth big-box department store chain saw better results than Home Depot in its fiscal fourth quarter that ended on January 31st, and had ongoing growth, but investors' zeal was contained due to predictions of weaker business performance in the upcoming year.
Upon opening, the Nasdaq Composite decreased 138 points (1.1%) to 12,253 points, the Dow Jones Industrial Average decreased 333 points (1%) to 33,533 points, and the S&P 500 fell 37 points (0.9%) to 4,050 points.
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