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US stock futures pulled back on Thursday as investors weighed Walmart’s (WMT) tariff-clouded earnings in the wait for retail sales and wholesale inflation data for further clues to the health of the economy.
Futures on the S&P 500 (ES=F) dropped roughly 0.5%, while Dow Jones Industrial Average futures (YM=F) slid 0.4%. Contracts on the Nasdaq 100 (NQ=F) sank about 0.6%, coming off a sixth upbeat session for tech stocks in a row.
Markets are on watch for the next catalyst now that US-China trade-truce euphoria has faded. On Thursday, the the latest development, President Trump said India has offered to “literally charge us no tariffs” on US goods to help clinch a trade deal.
In its quarterly results, Walmart said its prices will rise as it can’t avoid passing on the high costs of tariffs to customers. It posted a quarterly sales beat before the bell but withheld second-quarter guidance.
Read more: The latest on Trump’s tariffs
Eyes are now on April’s data on retail sales for a further glimpse into how the US consumer and economy are holding up in the face of President Trump’s fast-changing trade policies.
Also ahead, investors get a pulse check on inflation with the release of April’s Producer Price Index (PPI). The Consumer Price Index (CPI) update this week showed inflation pressures easing as Trump’s tariffs kicked off.
Federal Reserve policymakers have stressed they are watching for incoming data to provide a clearer picture of the state of the economy amid the “noise” of tariffs. Investors will listen closely to Chair Jerome Powell’s remarks at a conference in Washington on Thursday for any hints to Fed thinking on interest rates amid the tariffs fallout.
Meanwhile, oil tumbled nearly 4% after Trump said the US is “close to maybe doing a deal” with Iran over its nuclear program. Brent crude futures, the global benchmark, fell to below $64 a barrel, while West Texas Intermediate crude changed hands below $61.
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Walmart says it will hike prices due to tariffs
Walmart (WMT) shares rose about 2% premarket after the company reported mixed earnings and said it would hike prices to navigate President Trump’s tariffs.
America’s largest retailer has been seen as well-positioned to weather tariffs, as around 60% of its sales are in groceries, Yahoo Finance’s Brooke DiPalma reported. Its size also means it has leverage to negotiate with suppliers to keep prices low.
However, Walmart announced it would raise some of its prices due to tariffs.
“We will do our best to keep our prices as low as possible,” Walmart CEO Doug McMillon said in the release. “But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins.”
Walmart’s US same-store sales beat expectations with a 4.5% increase in the first quarter, led by strength in health and wellness and groceries. Here’s what the bellwether for retail reported on the top and bottom lines:
Walmart reiterated its conservative financial guidance for the year. It projected net sales to increase between 3% and 4%.
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Alibaba stock falls after quarterly revenue miss
Alibaba (BABA) stock dropped 5% before the bell on Thursday after missing quarterly revenue estimates as it adjusts strategies amid economic and trade challenges.
Reuters reports:
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CoreWeave slides as investors weigh $23 billion spending spree
Shares in CoreWeave sank as much as 8% after the AI data center provider’s plans for capital expenditure outstripped Wall Street forecasts.
Yahoo Finance’s Laura Bratton reports:
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Good morning. Here’s what’s happening today.
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Foot Locker stock rockets 80% in wake of Dick’s $2.4B deal
Dick’s Sporting Goods (DKS) has agreed to buy Foot Locker (FL) for roughly $2.4 billion, the companies said on Thursday, confirming an earlier report of the deal by The Wall Street Journal.
Shares in Foot Locker surged over 80% in premarket, taking another leg higher from after-hours gains on the confirmation of The Wall Street Journal’s earlier report of the deal.
Big box retailer Dick’s is offering $24 apiece for shares of its smaller footwear rival, a premium of 86% on the stock’s closing price on Wednesday, per Reuters.
Dick’s stock dropped almost 9% before the bell as investors assessed the move, which comes as President Trump’s tariffs pose supply risks and uncertainty for retailers.
The Associated Press reported:
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UnitedHealth stock slides as report of criminal investigation adds to woes
Shares of beleaguered UnitedHealth (UNH) sank almost 7% in premarket trading after a report that US prosecutors are probing the company over possible Medicare fraud.
The Department of Justice is carrying out a criminal investigation into the health insurer, The Wall Street Journal reported on Wednesday.
UnitedHealth told Reuters that it has not been notified by the DOJ about the reported investigation. The outlet reports:
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Cisco stock jumps as AI demand lifts annual forecast
Cisco Systems (CSCO) stock rose 4% before the bell on Thursday after its finance chief Scott Herren announced retirement from the company in July, and raised its annual results forecast.
Reuters reports:
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Japanese investors continue mammoth run of foreign stock spend
Japanese investors have logged eight consecutive weeks of heavy investment in foreign stocks. US tariff fears failing to stop high Yen spend, with momentum in trade talks only ramping up investment.
Reuters reports:
Read more here.
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Crude oil drops over $1 as stockpiles rise
US crude oil futures dropped over $1 as a rise in US stockpiles led to oversupply fears.
Brent Crude (BZ=F) sunk by $1.32 or 2% by late evening on Wednesday.
Reuters reports:
