Nasdaq, S&P 500, Dow Jones drop as Walmart warns, Fed on tap

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The stock market lost ground on Tuesday, hurt by a disappointing forecast from Walmart and poorly received earnings from a few other big names, like GM and UBS. Meanwhile, investors still have one eye fixed on Wednesday’s Federal Reserve decision.

The Nasdaq (COMP.IND) finished -1.9%, S&P (SP500) ended -1.2%, and the Dow (DJI) closed -0.7%.

The Dow Jones dropped 228.50 points to close at 31,761.54. The S&P 500 retreated 45.79 points to end at 3,921.02. The Nasdaq concluded trading at 11,562.57, a slide of 220.09 points.

Eight of the 11 S&P sectors lost ground. Consumer Discretionary led the decline, falling by 3.4%. Communication Services, Info Tech and Financials all showed notable weakness as well. Health Care, Real Estate and Utilities all ended modestly higher.

Walmart dropped after cutting its quarterly and full-year profit guidance on margin pressure. Meanwhile, Shopify slumped after it said it would lay off 10% of its workforce.

Beyond the handful of high-profile disappointments, the day’s major earnings were mostly favorable. GE outperformed to the upside, with McDonald’s and Coca-Cola also showing strength.

Looking to the bond market, the 10-year Treasury yield dipped 2 basis points to 2.80% and the 2-year yield rose two basis points to 3.06%.

Looking at the day’s econ data, the Conference Board’s July consumer confidence index fell more than expected to 95.7. Meanwhile, June new home sales dropped much more than expected to a rate of 590K.

Among other active stocks, 3M ranked among the top S&P gainers as it looks to spin off its healthcare unit.