The major U.S. index futures are currently pointing to a lower open on Thursday, with stocks likely to move to the downside after moving modestly higher over the two previous sessions.
A slump by shares of Walmart (NYSE:WMT) is likely to weigh on Wall Street, as the retail giant is tumbling by 6.6 percent in pre-market trading.
The steep drop by Walmart comes after the company reported better than fiscal fourth quarter earnings but provided disappointing guidance for the current year.
Traders may also look to cash in on the recent upticks by stocks, which have lifted the S&P 500 to record highs despite ongoing tariff concerns and indications the Federal Reserve is likely to keep interest rates on hold for some time.
Stocks moved modestly lower early in the session on Wednesday but regained ground over the course of the trading day. The major averages climbed well off their early lows and into positive territory, with the S&P 500 once again reaching a new record closing high.
The major averages ended the day modestly higher. The S&P 500 rose 14.57 points or 0.2 percent to 6,144.15, the Dow climbed 71.25 points or 0.2 percent to 44,627.59 and the Nasdaq inched up 14.99 points or 0.1 percent to 20,056.25.
The strength that emerged on Wall Street came as traders shrugged off early concerns about a global trade war even as President Donald Trump said he plans to impose tariffs on U.S. imports of automobiles, pharmaceuticals and semiconductors.
Trump said the 25 percent tariffs could be imposed as early as April 2nd and warned the duties could “go substantially higher over a course of a year.”
The rebound also came even though the minutes of the latest Federal Reserve meeting revealed officials want to see further progress on inflation before they consider resuming lowering interest rates.
The minutes of the Fed’s January 28-29 meeting also reiterated officials believe a “careful approach” in considering additional adjustments to the stance of monetary policy is appropriate given the high degree of uncertainty.
Factors mentioned by participants as supporting a “careful approach” included the reduced downside risks to the outlook for the labor market and economic activity and increased upside risks to the outlook for inflation, the Fed said.
Participants said the upside risks to the inflation outlook partly reflected the possible effects of potential changes in trade and immigration policy.
In U.S. economic news, the Commerce Department released a report showing housing starts pulled back by more than expected in the month of January.
Computer hardware stocks extended the rally seen over the past several sessions, with the NYSE Arca Computer Hardware Index surging by 1.9 percent to a new record closing high.
Significant strength also emerged among semiconductor stocks, as reflected by the 1.2 percent gain posted by the Philadelphia Semiconductor Index.
Healthcare stocks also showed a notable move to the upside, while weakness remained visible among housing and airline stocks.
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