Live stock market news: July 26, 2022

U.S. stock futures pointed to losses at Tuesday’s open as investors pondered disappointing results from Walmart and General Motors and braced for results from Big Tech.

Futures linked to the benchmark S&P 500 index fell slightly by 0.5%, while futures on the Dow Jones Industrial Average fell by about the same margin, or 155 points. Contracts on the tech-heavy Nasdaq Composite fell 0.6%.

Shares of Walmart (WMT) plunged 9% in premarket trading after the retail giant slashed its second-quarter and full-year profit outlook on Monday night due to runaway inflation and a decline in consumer spending on discretionary items.

“Rising levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress eliminating hardline categories, apparel at Walmart US requires more markdown dollars,” Walmart CEO Doug McMillon said in a statement. “We are now anticipating more pressure on general merchandise in the second half; however, we are encouraged by the start we are seeing on school supplies at Walmart US”

Walmart’s warning sent shares of other retailers lower early in the trade. Shares of Amazon (AMZN) fell 3.5%, Target (TGT) 5% and Dollar General (DG) 3%.

A disappointing report from General Motors (GM) on Tuesday morning also weighed on sentiment, indicating that second-quarter results were below Wall Street estimates. The Detroit-based automaker saw its net profit fall 40% from a year ago during the period and said it failed to deliver 95,000 vehicles due to parts shortages. Shares fell nearly 2% in early trades.

Elsewhere in the markets, shares of UBS (UBS) fell more than 7% after the Swiss bank reported quarterly profit lower than analysts expected, as market volatility weighed on the bank’s earnings investment and financial institution warned of a tough second half.

Federal Reserve officials will convene for their two-day policy meeting on Tuesday and are expected to raise interest rates another 75 basis points when it concludes Wednesday afternoon. Federal Reserve Chairman Jerome Powell is due to deliver a speech at 2:30 p.m. ET shortly after the U.S. central bank’s policy decision was released at 2:00 p.m. ET.

WASHINGTON, DC – JUNE 22: Jerome Powell, Chairman of the Board of Governors of the Federal Reserve, testifies before the Senate Banking, Housing, and Urban Affairs Committee on June 22, 2022 in Washington, DC. Powell testified on the semi-annual monetary policy report to Congress during the hearing. (Photo by Win McNamee/Getty Images)

Investors are in the throes of the busiest week of the year for Wall Street, with big tech earnings at their fingertips, a jam-packed schedule of economic releases – including the all-important advance estimate of second-quarter GDP – and the Fed’s rate decision in the spotlight.

The second quarter reports from Microsoft (MSFT) and Alphabet (GOOG) will be watched closely after the bell.

According to FactSet Research, 21% of S&P 500 companies reported second-quarter earnings through Friday, with only 68% reporting actual earnings per share above estimates — below the five-year average of 77%. All revenue beats were also, overall, just 3.6% above estimates, less than half the five-year average of 8.8%.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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