U.S. stocks fell Tuesday after Walmart cut its earnings forecast, sending other retail shares lower and adding to concern that consumer spending might not be strong enough to keep the U.S. out of a recession.
The Dow Jones Industrials scaled back 77.35 points to kick off Tuesday at 31,912.69.
The S&P 500 gave back 24.33 points to 3,942.51.
The NASDAQ tumbled 128.76 points, or 1.1%, to 11,653.90.
Walmart said Monday that it cut its quarterly and full-year profit estimates because of rising food inflation. This alarmed investors who deliberated the implications for other retail stocks. The big-box retailer said higher prices are spurring consumers to pull back on general merchandise spending, particularly in apparel.
Walmart plunged 8% Tuesday and dragged other retailers with it. Target and Kohl's each dropped about 5%, while Amazon and Dollar General each fell 4%. Costco shed 3%.
Elsewhere, General Motors fell 3.3% after the company missed earnings estimates, citing supply chain disruptions stemming from Russia's war on Ukraine and global COVID lockdowns. Rival Ford is scheduled to report results after the bell.
UPS shares fell 3%, despite the company posting earnings and revenue beats for the second quarter, after the shipping giant reported declines in its international and supply chain businesses.
On the flip side, Coca-Cola shares rose 2.2% after the beverage giant topped earnings and revenue expectations, citing a sales volume recovery from the pandemic and higher pricing.
Shares of McDonald's added nearly 1.7% following mixed second-quarter results, in which net sales were hurt in part by the closure of locations in Russia and Ukraine, but international growth elsewhere fueled a rise same-store sales.
Industrial stocks gave a positive showing too. Shares of 3M rose 5% after beating earnings and revenue estimates and announcing plans to spin its health care business into a separate publicly traded company.
General Electric posted better-than-expected results citing recovery in the aviation industry that boosted its jet engine business. Its shares gained almost 6%.
Treasury prices regained lost ground, lowering yields to 2.73%, from Monday's 2.81%. Treasury prices and yields move in opposite directions.
Oil prices picked up 75 cents to $97.45 U.S. a barrel.
Gold prices dropped $2.40 to $1,716.70 U.S. an ounce.