Stock futures are trending lower this morning following a positive session for the three major indexes. Investors are gearing up for the trading day with several key developments to consider.
Walmart, the largest grocer in the U.S., has seen its shares drop by over 2% in premarket trading after releasing guidance that was below Wall Street’s expectations for the current fiscal year. Although the retailer reported fourth-quarter earnings and revenue that narrowly exceeded analysts’ predictions, it anticipates adjusted earnings per share for the full fiscal year to fall between $2.75 and $2.85, while analysts were expecting $2.96 per share. This comes as the company is under new leadership with CEO John Furner, who took over earlier this month. Walmart’s stock has performed strongly over the past year, climbing more than 21% and reaching a significant milestone with a market cap of $1 trillion. Additionally, Wayfair announced its first annual sales gain since 2020, while Etsy shares surged in premarket trading after beating fourth-quarter earnings expectations and announcing a sale of its clothing resale service Depop to eBay.
In developments from the Federal Reserve, the minutes from the January meeting indicate a consensus on maintaining current interest rates, though there were divisions on the future path of monetary policy. Some officials suggested that rates could decrease if inflation continues to drop, while others preferred a more cautious approach. Economic advisor Kevin Hassett also critiqued a New York Fed paper, which stated that U.S. companies and consumers were bearing the brunt of impacts from tariffs, labeling it “the worst paper I’ve ever seen in the history of the Federal Reserve system.”
In healthcare news, FDA Commissioner Marty Makary highlighted concerns about the U.S.’s early-stage drug development in comparison to China’s efforts. He emphasized the need for streamlined processes for trial initiation on new treatments and argued that most medications should be available over the counter, except those considered unsafe or highly controlled. This comes as Moderna reported that the FDA will review its experimental mRNA flu shot, leading to a roughly 6% increase in the company’s stock following the news.
Meanwhile, Meta CEO Mark Zuckerberg testified in a high-profile trial examining social media safety, paralleling the industry’s ongoing scrutiny often referred to as the “Big Tobacco” moment. During his testimony, Zuckerberg denied that increasing user engagement was a formal objective of the company, despite earlier communications suggesting otherwise. Security measures were heightened in the courtroom, with the judge warning against the use of smart glasses by courtroom attendees, emphasizing the need for decorum during the proceedings.
In airline news, United Airlines announced changes to its frequent flyer program, penalizing basic economy travelers who do not hold the airline’s credit card. This adjustment mirrors similar moves made by American Airlines and Delta Air Lines and marks one of the most significant shifts in United’s loyalty program in over a decade, with cardholders set to earn more points.
These developments are set against a backdrop of ongoing tensions in various sectors, as investors remain attentive to how these changes could impact the broader market landscape in the coming days.
