U.S. Stocks Move Mostly Lower On Disappointing Walmart Guidance, Iran Concerns

(RTTNews) - Stocks moved mostly lower during trading on Thursday, giving back ground after turning in a strong performance in the previous session. The major averages all moved to the downside, although selling pressure was somewhat subdued.

The major averages finished the day off their lows of the session but still in negative territory. The Dow slid 267.50 points or 0.5 percent to 49,395.16, the Nasdaq fell 70.91 points or 0.3 percent to 22,682.73 and the S&P 500 dipped 19.42 points or 0.3 percent to 6,861.89.

The weakness on Wall Street partly reflected a negative reaction to earnings news from Walmart (WMT), with the retail giant slumping by 1.4 percent.

While Walmart reported fourth quarter results that exceeded analyst estimates, the company provided weaker than expected earnings guidance for the current year.

Negative sentiment may also have been generated by a continued spike by the price of crude oil amid concerns about a military conflict between the U.S. and Iran.

However, traders seemed reluctant to make significant moves ahead of the release of closely watched readings on consumer price inflation on Friday. The data could have a significant impact on the outlook for interest rates.

The minutes of the Federal Reserve's latest monetary policy meeting noted a number of participants judged further rate cuts may not be warranted until there was clear indication that the progress of disinflation was firmly back on track.

Sector News

Airline stocks showed a substantial move to the downside on the day, with the NYSE Arca Airline Index plummeting by 4.4 percent.

Significant weakness was also visible among housing stocks, as reflected by the 1.3 percent loss posted by the Philadelphia Housing Sector Index.

On the other hand, computer hardware stocks saw considerable strength, resulting in a 3.3 percent surge by the NYSE Arca Computer Hardware Index.

Oil service also turned in strong performances amid an extended surge by the price of crude oil amid concerns about a potential military conflict between the U.S. and Iran.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Thursday, with several markets still closed for holidays. Japan's Nikkei 225 Index climbed by 0.6 percent, while South Korea's Kospi surged by 3.1 percent.

Meanwhile, the major European markets moved to the downside on the day. While the German DAX Index slid by 0.9 percent, the U.K.'s FTSE 100 Index declined by 0.6 percent and the French CAC 40 Index fell by 0.4 percent.

In the bond market, treasuries recovered from initial weakness and showed a lack of direction before closing roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point to 4.075 percent.

Looking Ahead

While the consumer price inflation readings may be in the spotlight on Friday, traders are also likely to keep an eye on reports on fourth quarter GDP, new home sales and consumer sentiment.