Y'all Street Daily
The retail bellwether topped Wall Street's second-quarter estimates, but a cautious third-quarter forecast sent shares down more than 6 percent before the open.
Market Snapshot
All figures are indicative opening levels as of this morning, August 20.
Stocks are steady after Wednesday's rebound snapped a three-day skid, with the Dow, S&P 500 and Nasdaq all closing narrowly higher.
The dollar softened and the VIX slipped back toward 15, a calmer tape underneath the earnings headlines.
Gold eased after Wednesday's surge while silver kept climbing, up around 3 percent on the day.
Walmart is the story of the morning, down around 6 percent pre-market despite a clean earnings beat, while Moderna is holding onto its historic vaccine-driven run and Nvidia drifts lower as chip names stay under pressure.
Main Story
Walmart delivered the numbers but not the guidance, and that was enough to knock the stock.
The retailer posted adjusted earnings of around 81 cents against the 74 cents Wall Street expected, on revenue of around 187.9 billion dollars with global e-commerce sales up 23 percent.
The selloff is being pinned on a soft outlook, with Walmart guiding third-quarter earnings of around 62 to 64 cents versus the 68 cents analysts wanted and holding its full-year view below consensus.
The read-through is a more cautious consumer heading into the back half, and the tape will now lean on whether higher-margin advertising and membership can keep offsetting cooling same-store sales.
Chart of the Day
Walmart had spent weeks grinding just under its 116.45 resistance, unable to break higher.
Thursday's report settled it in one move, gapping the stock down to around 107 before the bell.
The level to watch now is whether buyers step in near that gap or let it stretch toward the low end of the yearly range.
Technical Trading
A few levels worth watching across the tape:
Walmart snapped its recent 112 to 117 range with the gap lower, turning the old 116.45 resistance into a ceiling well above spot.
Silver is holding its breakout around 66, with the long-term 50.36 zone now acting as support after this year's run.
The S&P 500 sits above its 50-day average near 7,488 with the 14-day RSI around 63, firm but not yet stretched.
Global News
The US Treasury said it will more than double its buybacks of long-dated debt, a move that pulled 30-year yields back from multi-decade highs and gave stocks some relief.
Long-end borrowing costs remain the market's main worry, with the 30-year holding near 5.2 percent on deficit and supply concerns.
Oil pushed higher again, with WTI around 85.51 as US-Iran tensions and questions over the Strait of Hormuz keep a risk premium in crude.
Moderna extended its historic surge after late-stage melanoma vaccine data with Merck, lifting the broader health care sector.
Marvell jumped after issuing Google a warrant tied to a custom-chip deal, a rare bright spot in an otherwise soft week for semiconductors.
Texas News
Higher crude tied to Hormuz risk continues to favor the Permian Basin producers that anchor the state economy.
The latest Dallas Fed survey showed oil and gas activity at its strongest since 2022, even as firms stay cautious on aggressive expansion.
Looking Ahead
Thursday, August 20: More earnings roll in alongside Walmart, with Deere and Alibaba also reporting before the open for a fuller read on the consumer and China.
Tuesday, August 26: Nvidia reports fiscal second-quarter results, the last big AI bellwether of the season and a real test for wobbling chip stocks.
The Y’all Street Podcast
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Prices from Yahoo Finance, CNBC and stockanalysis.com. Technical levels from Investing.com and Barchart. News from Reuters, CNBC and Yahoo Finance.
For informational purposes only. Not investment advice. Prices are indicative opening levels and may differ from your broker.