Retail hammers markets
Tuesday was a rough day for retail stocks, both brick-and-mortar and e-commerce, and pressured stocks in Toronto and New York. Walmart announced downbeat guidance for the rest of the year by lowering its profit outlook, blaming rising food and gas prices.
Meanwhile, Shopify laid off 10% of its workforce. The TSX shed 0.7% below 19,000 as it was dragged down by tech. Only staples and materials were positive. Shopify sank 13.63%. Also losing ground were Lightspeed at -5.84%, Canada Goose at -6.9%, Aritzia -6.31% and Well Health Technologies -6.14%. Crude oil added to the TSX’s woes as WTI declined 1.5% to $95 and WCS slid over 2% below $75.
Walmart and retail hammered Wall Street as the S&P closed -1.15%, the Nasdaq -1.87% and the Dow -0.71%. Walmart finished the day -7.6%, Amazon -5.23%, PayPal -5.5%, Meta -4.5%, and Carnival -7.41%. The few gainers included 3M up nearly 5% and McDonald’s up 2.68%. The U.S. 10-year yield slipped to 2.8% while Bitcoin sank 3.5% below $21,000. This week is the height of U.S. quarterly earnings. After the bell, Alphabet, Texas Instrument and Visa popped after releasing their quarter, while Microsoft declined.
🛍 Shopify Inc. (SHOP-T) -13.63%
💾 Lightspeed Commerce Inc (LSPD-T) -5.84%
🧣 Canada Goose Holdings (GOOS-T) -6.9%
👗 Aritzia Inc. (ATZ-T) -6.31%
👨⚕️ WELL Health Technologies (WELL-T) -6.14%
🛒 Walmart Inc (WMT-N) -7.6%
📦 Amazon.com (AMZN-Q) -5.23%
💳 PayPal Holdings Inc. (PYPL-Q) -5.5%
🕵️♂️ Meta Platforms Inc / Facebook (FB-Q) -4.5%
🚢 Carnival Corp. (CCL-N) -7.41%
💾 3M Co. (MMM-N) +5%
🍔 McDonalds (MCD-N) +2.68%
🅱 Bitcoin (BTCUSD) (CRYPTO:BTC) -3.5%