In Asia, shares were relatively subdued early on Wednesday, with regional indexes notching slight gains despite the softer lead from Wall Street.
"Investors have been lulled into a false sense that stock markets are not volatile", said Doug Cote, chief market strategist for Voya Investment Management. "We believe this is down to Walmart's focus on low prices plus better customer service, improved ranges, and better-selling environments".
The S&P technology index gained 0.3 as the sole major S&P sector on the plus side, buoyed by a gain of almost 2 percent in the semiconductor sector.
The Dow Jones Industrial Average fell 145.61 points, or 0.58 percent, to 25,073.77. The Nasdaq composite slipped 5 points, or 0.1 percent, to 7,234. As a result, the company's stock is down more than 10% in after-hours trading.
USA stocks opened lower on Tuesday, hurt by a rise in bond yields and disappointing quarterly results from Walmart. Its shares slumped 10.2 percent, and suffered their biggest percentage fall since January 1988.
BONDS LOOM: The rising yield on the 10-year Treasury, which is used as a benchmark for mortgages and other loans, is making bonds more appealing than stocks. (Excluding currency, the increase was lower, at 3.1%.) Comparable sales in the US were up 2.6% in Q4, and Walmart said that on a two-year stack, comps were the best in eight years with a 4.4% increase. Ajo Lp sold 449,409 shares as the company's stock rose 13.55% with the market. Finally, Morgan Stanley boosted their price target on shares of Wal-Mart Stores from $90.00 to $92.00 and gave the company an "equal weight" rating in a report on Friday, November 17th. Ross Stores dropped $2.19, or 2.7 percent, to $77.98. Barclays Capital maintained the stock with "Equal-Weight" rating in Thursday, March 31 report. Wal-Mart forecast earnings of US$4.75 to US$5 per share for 2018. The stock fell $5.16 to $94.67. Ajo Lp who had been investing in Wal for a number of months, seems to be less bullish one the $272.91B market cap company. The sweetened offer further complicates Broadcom's (AVGO) attempts to take over Qualcomm. More interesting news about Walmart Inc. Albertsons Cos., the owner of Safeway and other grocery brands, announced Tuesday it is buying the drugstore chain Rite Aid. The deal will double the amount of drugstores it owns. It rose 24 cents to settle at $61.79 per barrel in NY. Brent crude, used to price global oils, shed 42 cents to close at $65.25 a barrel. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 2.31% with $1.43 Billion sitting short, betting on future declines. Wholesale gasoline was little changed at $1.75 a gallon. The Dow fell 1,000 points twice in a week. Silver dropped 27 cents to $16.44 an ounce. The euro edged lower to $1.2335 from $1.2337.
Major indexes in Europe ended mostly higher. Over in Hong Kong, the Hang Seng Index rose 0.42% in early trade. At last check, the French CAC 40 and the German DAX were both up 0.1%, while London's FTSE 100 was down 0.2%. WALTON JIM C had sold 2.12 million shares worth $166.15M on Wednesday, August 30. South Korea's Kospi lost 1.1 percent.
TOKYO: The Asian markets were subdued with weakness across the region and Chinese markets remaining closed for the Lunar New Year holiday.