Wall Street is ticking lower in premarket trading Thursday as investors perused Walmart’s latest financial results ahead of Federal Reserve Chair Jerome Powell’s highly anticipated speech on Friday.
Futures for the S&P 500 turned 0.2% lower before the bell, while futures for the Dow Jones Industrial Average slid 0.3%. Nasdaq futures edged 0.1% lower.
Retail sector bellwether Walmart reported increases in second-quarter profits and sales Thursday as it continues to lure price-sensitive shoppers for groceries and other essentials despite a challenging tariff environment.
The nation’s largest retailer dipped 2.6% in premarket trading despite raising its annual profit and sales outlook. Walmart is among the first group of major U.S. retailers this week to report quarterly results that should shed more light on how consumers are coping with rising prices because of higher tariff costs.
Beauty and cosmetics maker Coty did not fare as well in its most recent quarter. Investors fled after the owner of CoverGirl and Clairol beauty brands posted an unexpected fourth-quarter loss, sending shares down more than 20% after hours. Sales fell 8% from the same period a year ago and the company said it expects margins to continue to be pressured by lower sales and the impact of tariffs.
Wall Street’s attention will turn to Jackson Hole, Wyoming on Friday, when Powell will speak to an annual conference of central bankers.
The Fed has kept its main interest rate steady this year, concerned that President Donald Trump’s tariff hikes could push inflation higher. But a surprisingly weak report on job growth across the U.S. may be superseding that.
Still, minutes from the Fed’s July 29-30 meeting greater concern than the potential for job losses, leading the central bank to keep its key rate unchanged.
The Fed’s inaction has infuriated Trump, who has publicly admonished Powell and other Fed officials, going so far as to demand that they resign.
On Wednesday, Fed governor Lisa Cook said she wouldn’t leave her post after Trump on social media called on her to resign over an accusation from one his officials that she committed mortgage fraud.
Investors — and the president — are hoping that Powell hints at a rate cut in his speech Friday, which would likely give stocks and other investments a boost.
In Europe, Germany’s DAX and Britain’s FTSE 100 each gave up 0.2% in midday trading, while the CAC 40 in Paris shed 0.5%.
In Asian trading, Tokyo’s Nikkei 225 fell 0.6% after a survey showed Japan’s factory activity remained in contraction for the second month in August. The S&P Global flash Japan Manufacturing Purchasing Managers’ Index (PMI) increased to 49.9 in August from 48.9 in July, just below the 50 level marking the cutoff between growth and decline.
Regional manufacturers have been feeling pressure from Trump’s higher tariffs on exports to the United States.
Hong Kong’s Hang Seng index edged 0.2% lower, while the Shanghai composite index rose 0.1%.
“Asian markets walked into Thursday like a card room still heavy with last night’s smoke — muted, watchful, waiting for the next cue out of Jackson Hole,” Stephen Innes of SPI Asset Management said in a commentary.
The exception was Australia, where the S&P/ASX 200 index added 1.1% to 9,019.10, surpassing the 9,000 level for the first time in a rally driven by strong economic data and corporate earnings.
In South Korea, the Kospi added 0.4% after shedding some its morning gains.
Taiwan’s TAIEX climbed 1.4%, while India’s Sensex added 0.3%.
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