U.S. stocks closed sharply lower on Tuesday, 26th July 2022, as Walmart’s profit warning weighed on retail stocks and unusually weak consumer confidence data fueled concerns about spending.
Retailer Walmart plunged 7.6% after the company cut its full-year profit forecast late Monday, saying food and fuel prices had soared and that it needed to cut prices to reduce inventories.
Target fell 3.6%, Amazon dropped 5.2% and the S&P 500 index of retail stocks fell 4.2%.
Earlier data showed that U.S. consumer confidence fell to a nearly one-and-a-half-year low in July as concerns about high inflation and interest rate hikes persisted, pointing directly to slower economic growth at the start of the third quarter.
The International Monetary Fund (IMF) cut its global growth forecast again on Tuesday, warning that downside risks from high inflation and the war in Ukraine are becoming a reality and could push the global economy to the brink of recession if left unchecked.
(Dow 30, 1-hour chart)
The Dow focuses on the 32083-line today. If the Dow runs steadily above the 32083-line, it will pay attention to the suppression strength of the two positions of 32455 and 32781. If the Dow runs steadily below the 32083-line, it will pay attention to the support strength of the two positions of 31661 and 31291.
Hong Kong Stocks
Hong Kong stocks opened lower in the morning session, failing to continue yesterday’s rally as market sentiment remained sluggish.
The Hang Seng Index (HSI) fell 1.51%, the Hang Seng China Enterprises Index (HSCEI) fell 1.67% and the Hang Seng TECH Index (HSTECH) fell 1.65%.
The Southbound capital inflow bucked the trend of a net inflow of HK$2.203 billion in the half-day, and the market turnover was HK$45.7 billion.
On the market, the general decline of large technology stocks caused the market to weaken. Alibaba Group Holding Limited (9988.HK) fell nearly 4%, Baidu, Inc. (9888.HK) fell nearly 3%, Tencent Holdings Limited (0700.HK), Xiaomi Corporation (1810.HK) fell 2%, NetEase, Inc. (9999.HK), JD.com, Inc. (9618.HK), Meituan (3690.HK) were down more than 1%.
Citibank said real estate funds only to protect the delivery of buildings, not enough to resolve the crisis in the domestic housing.
Yesterday’s sharp rebound in the domestic housing stocks and property management stocks fell again, Country Garden Holdings Company Limited (2007.HK), and Country Garden Services Holdings Company Limited (6098.HK) led the decline.
Overnight, Adidas cut its full-year earnings outlook, the sporting goods stocks collectively lower.
Education stocks, catering stocks, auto stocks, biotechnology stocks, domestic insurance stocks, etc. all fell.
On the other hand, military stocks bucked the trend, Apple Inc. (AAPL) rose partially, Cowell e Holdings Inc. (1415.HK) jumped more than 7% and hit a new record high.
(HK50, 1-hour chart)
HK50 focuses on the 21450-line today. If HK50 can run stably above the 21450-line, then focus on the suppression strength of 22127 and 22785. If HK50 runs below the 21450-line, then pay attention to the support strength of 20467 and 19517.
FTSE China A50 Index
(FTSE China A50, 1-hour chart)
FTSE China A50 focuses on the 13887-line today. If the A50 runs stably below the 13887-line, pay attention to the support strength of the two positions of 13544 and 13157. If the A50 runs above the 13887-line, it will open up further upward space. At that time, focus on the two positions of 14371 and 14695.
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