US open: Stocks lower following Walmart results
By Iain Gilbert
Date: Thursday 21 Aug 2025
(Sharecast News) - Major indices were in the red early on Thursday as traders digested earnings from big-box retailer Walmart.
As of 1520 BST, the Dow Jones Industrial Average was down 0.66% at 44,641.85, while the S&P 500 shed 0.39% to 6,370.86 and the Nasdaq Composite came out of the gate 0.27% weaker at 21,114.68.
The Dow opened 296.46 points lower on Thursday, easily erasing modest gains recorded in the previous session as shares in big tech firms weighed on major indices.
Thursday's primary focus looked set to be quarterly earnings from retail giant Walmart, which saw the firm deliver second-quarter earnings that missed expectations. Revenues climbed 4.8% year-on-year to $169.3bn and adjusted operating income rose 7.2% to $6.4bn, while adjusted earnings per share came in at $0.67, excluding a $0.11 net investment loss, short of the $0.73 expected by analysts and snapping a three-year streak of bottom-line beats. Walmart also raised its full-year guidance, citing strength across store, club, and digital channels.
Walmart's earnings come hot on the heels of fellow big-box retailer Target's numbers on Wednesday, with the group reporting yet another quarterly sales decline and revealing that longtime chief executive Brian Cornell will be stepping down from the role.
Market participants will also be holding their breath until comments from Federal Reserve chairman Jerome Powell at the central bank's annual economic symposium in Jackson Hole on Friday, with traders hoping to gain further insights into the future of interest rate policy. Fed funds futures were currently pricing in a more than 80% chance that the central bank cuts interest rates at its September meeting after minutes from FOMC's July meeting showed policymakers were concerned about the state of the labour market and inflation, although most agreed that it was too soon to lower interest rates. Governors Christopher Waller and Michelle Bowman both dissented against holding rates steady, marking the first time two voting Fed officials have done so in more than 30 years.
On the macro front, Americans lined up for unemployment benefits at an accelerated pace in the week ended 16 August, according to the Labor Department. Initial jobless claims rose to 235,000, up from the prior week's unrevised print of 224,000 and well ahead of market expectations of a more modest increase to 225,000, while continuing claims increased by 30,000 to 1.97m, ahead of the 1.96m print expected by economists and the highest level since November 2021, Meanwhile, the four-week moving average, which aims to strip out week-to-week volatility, increased by 4,500 to 221,750.
Elsewhere, the Philadelphia Fed's manufacturing index fell to -0.3 in August, well below estimates of +6.8 and July's +15.9 reading, pointing to a renewed contraction in activity. The new orders index fell 20 points to -1.9 for its first negative reading since April.
Moving on, a preliminary reading of S&P Global's August manufacturing PMI rose to 53.3 in August from 49.8 in July, well above market expectations of 49.5, while the services PMI ticked lower to 55.4 in August from the year-to-date high of 55.7 in July, but was still above consensus estimates of 54.2 to extend the recent period of sharp expansions in private services activity. The flash estimate also showed the composite PMI had inched up to 55.4 in August from 55.1 in July for the 31st consecutive monthly growth.
Finally, US existing home sales rose by 2% to a seasonally-adjusted annualised rate of 4.01m in July, according to the National Association of Realtors, the sharpest increase since February and above expectations of a 3.92m print.
In the corporate space, Workday and Zoom Communications were both set to report their latest quarterly figures after the close.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
Merck & Co. Inc. (MRK) $86.18 1.80%
Walgreens Boots Alliance, Inc. (WBA) $12.16 0.65%
Chevron Corp. (CVX) $154.01 0.52%
Home Depot Inc. (HD) $403.05 0.33%
Travelers Company Inc. (TRV) $275.21 0.30%
Johnson & Johnson (JNJ) $179.37 0.30%
Unitedhealth Group Inc. (UNH) $300.38 0.18%
Coca-Cola Co. (KO) $70.82 0.18%
Boeing Co. (BA) $225.72 0.04%
Cisco Systems Inc. (CSCO) $66.79 0.02%
Dow Jones - Fallers
Walmart Inc. (WMT) $97.98 -4.47%
Intel Corp. (INTC) $23.13 -2.98%
Salesforce.Com Inc. (CRM) $241.62 -1.96%
Dow Chemical Co. (DOW) $23.61 -1.93%
Microsoft Corp. (MSFT) $504.90 -1.15%
Walt Disney Co. (DIS) $116.06 -0.84%
Nike Inc. (NKE) $75.63 -0.82%
International Business Machines Corporation (CDI) (IBM) $240.63 -0.79%
Apple Inc. (AAPL) $225.84 -0.79%
American Express Co. (AXP) $306.39 -0.65%
S&P 500 - Risers
Analog Devices Inc. (ADI) $247.40 4.95%
Nektar Therapeutics (NKTR) $27.44 4.15%
Packaging Corp. Amer (PKG) $204.66 3.30%
Regeneron Pharmaceuticals Inc. (REGN) $594.08 3.21%
Hewlett Packard Enterprise (HPE) $21.63 2.78%
Texas Instruments Inc (TXN) $201.07 1.90%
DaVita Inc (DVA) $139.96 1.85%
Merck & Co. Inc. (MRK) $86.18 1.80%
General Electric Co. (GE) $271.20 1.79%
International Paper Co. (IP) $47.74 1.56%
S&P 500 - Fallers
Coty Inc. Class A (COTY) $3.89 -19.96%
Walmart Inc. (WMT) $97.98 -4.47%
American Airlines Group (AAL) $12.57 -4.01%
United Airlines Holdings Inc (UAL) $98.02 -3.29%
Gilead Sciences Inc. (GILD) $115.71 -3.21%
Intel Corp. (INTC) $23.13 -2.98%
J.B. Hunt Transport Services Inc. (JBHT) $141.68 -2.76%
Adobe Systems Inc. (ADBE) $348.78 -2.62%
Apache Corp. (APA) $20.16 -2.45%
Norwegian Cruise Line Holdings Ltd (NCLH) $23.27 -2.41%
Nasdaq 100 - Risers
Analog Devices Inc. (ADI) $247.40 4.95%
Qvc Group Inc Series A (QVCGA) $4.26 4.67%
Regeneron Pharmaceuticals Inc. (REGN) $594.08 3.21%
Texas Instruments Inc (TXN) $201.07 1.90%
Microchip Technology Inc. (MCHP) $66.15 1.49%
Liberty Global plc Series C (LBTYK) $11.45 1.37%
NetEase Inc. Ads (NTES) $131.21 1.03%
Alphabet Inc. Class A (GOOGL) $201.22 0.98%
Alphabet Inc. Class C (GOOG) $202.11 0.93%
Incyte Corp. (INCY) $86.21 0.90%
Nasdaq 100 - Fallers
American Airlines Group (AAL) $12.57 -4.01%
Sirius XM Holdings Inc (SIRI) $22.01 -3.48%
Gilead Sciences Inc. (GILD) $115.71 -3.21%
Intel Corp. (INTC) $23.13 -2.98%
J.B. Hunt Transport Services Inc. (JBHT) $141.68 -2.76%
Adobe Systems Inc. (ADBE) $348.78 -2.62%
Starbucks Corp. (SBUX) $88.78 -2.31%
Paypal Holdings Inc (PYPL) $67.31 -2.29%
Ross Stores Inc. (ROST) $146.54 -2.09%
Workday, Inc. (WDAY) $226.18 -2.00%
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