Shares collapse with Walmart, Home Depot profits in focus – .

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Shares collapse with Walmart, Home Depot profits in focus – .


U.S. stock indices were down Tuesday morning as investors digested profits from large retailers and awaited a speech from Federal Reserve Chairman Jerome Powell.

The Dow Jones Industrial Average lost 299 points, or 0.84%, while the S&P 500 and Nasdaq Composite fell 0.65% and 0.82% respectively. The Dow Jones and S&P 500 closed Monday at record highs for a fifth consecutive session.

Powell is scheduled to speak at an event at City Hall at 1:30 p.m. ET. Market watchers will be keenly aware of any hints the Fed chairman may give as to when the central bank will start cutting asset purchases and raising interest rates.

Investors got a glimpse of the health of consumers, as retail sales fell 1.1% in July, worse than the expected 0.3% drop.

In equities, the Dow component Walmart reported earnings and earnings above Wall Street estimates as back-to-school shopping gave a boost. The big box retailer was forecasting profit for the current year and quarter ahead of what analysts expected.

Another Dow member, Home Depot Inc., beat both bottom line and bottom line, but same-store sales increased by the smallest amount in two years as the DIY trend waned as part of a reopening of the economy.

Target Corp. and Lowe’s Companies Inc. are among the companies expected to release their quarterly results on Wednesday.

Elsewhere, financial firms, including JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc., fell as purchases in the Treasury complex lowered the 10-year yield by four basis points to 1.23% while flattening the yield curve.

In commodities, West Texas Intermediate crude oil slipped 35 cents to $ 66.94 per barrel and gold climbed 90 cents to $ 1,790.70 per ounce.

Overseas markets were mostly down.

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European stock markets were mixed with the German DAX 30 and the French CAC 40 losing 0.18% and 0.46% respectively, while the UK FTSE 100 rose 0.21%.

In Asia, Japan’s Nikkei 225 slipped 0.36%, Hong Kong’s Hang Seng index fell 1.66% and China’s Shanghai Composite fell 2%.

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