The major three stock indexes closed lower on the New York Stock Exchange. This is interpreted as being influenced by concerns that U.S. consumption may slow down due to the weak performance outlook from Walmart, which represents the retail institutional sector.
On the 20th (local time), the Dow Jones Industrial Average closed at 44,176.65, down 1.01% from the previous day on the New York Stock Exchange (NYSE). The Standard & Poor's (S&P) 500 index fell 0.43% to 6,117.52, while the Nasdaq index ended 0.47% lower at 19,962.36.
On this day, Walmart projected a net revenue growth rate of 3-4% for the fiscal year 2026 (February 2025 to January 2026). This falls below the market expectation of 4%. The expected adjusted earnings per share were estimated at $2.50 to $2.60, lower than the forecast of $2.77. Following this news, Walmart's stock price dropped more than 6% on the day.
Walmart's performance is used as a key indicator to gauge the U.S. consumption economy. Tom Fitzpatrick, executive director at futures brokerage R.J. O'Brien & Associates, noted, "If Walmart provides bad guidance, we need to pay attention," adding, "This could suggest that the general consumer is fatigued."
The U.S. leading economic index (LEI) fell in January, relinquishing most of the gains from the previous two months, which also dampened investor sentiment. The Conference Board, a U.S. economic analysis institution, announced that the U.S. leading economic index for January recorded a decline of 0.3% compared to the previous month, at 101.5 (2016=100). This marked a turn to a decline following a 0.1% increase in December and also fell short of the market expectation of a 0.1% drop.