* Walmart drops after holiday-qtr profit misses estimates
* Consumer staples lead laggards on the S&P
* S&P 500 comes off best week in 5 years
* Indexes down: Dow 0.32 pct, S&P 0.17 pct, Nasdaq 0.01 pct
(Updates to open)
By Sruthi Shankar and Aparajita Saxena
Feb 20 (Reuters) - The S&P and the Dow slipped after six
straight days of gains on Tuesday, hurt by disappointing
quarterly results from Walmart and a rise in bond yields.
Shares of the world's biggest brick-and-mortar retailer
fell more than 9 percent after the company reported a
lower-than-expected profit and posted a sharp drop in online
sales growth during the holiday period.
Target dipped 2.6 percent, while Costco Wholesale
dropped 1.6 percent, dragging the S&P consumer staples
index down 1.62 percent.
Amazon was up 0.9 percent.
Other big decliner was Qualcomm, which fell nearly
4 percent after the chipmaker raised its offer to buy NXP
Semiconductors NV to $127.50 per share from $110. NXP
shares rose 6.2 percent.
"The markets were indicating a lower open last night and an
increase to the downside came after Walmart reported an earnings
miss. We're also seeing yields move up above the 2.80/2.91, and
that has markets a little bit concerned," said Robert Pavlik,
chief investment strategist at SlateStone Wealth in New York.
At 9:37 a.m. ET, the Dow Jones Industrial Average was
down 0.32 percent at 25,138.98 and the S&P 500 fell 0.17
percent to 2,727.46. The Nasdaq Composite was down just
0.01 percent, at 7,238.57.
The S&P 500 racked up its biggest weekly increase in five
years last week, easing fears that a deeper market correction
was taking hold after a handful of large daily losses at the
start of February.
The spark for those falls was a rise in U.S. bond yields,
however, and benchmark 10-year Treasury bond yields
hit four-year highs of 2.8950 percent on Tuesday.
The S&P financial index was up 0.7 percent, led by
gains in Wells Fargo and JPMorgan & Chase.
"The market views rising interest rates as potentially
getting a little bit ahead of themselves. The bond market is
oversold, the yield environment is overbought, but that has not
stopped the slowdown in equities," said Pavlik.
Minutes from the Federal Reserve's January meeting on
Wednesday will be at the center of this week's trade, eyed for
more clues on the central bank's view on inflation and the pace
of future interest rate increases.
Traders are pricing in an 83.1 percent chance that the Fed
will raise its main rates again in March, according to the CME
Group's FedWatch tool.
Wall Street's fear gauge, the CBOE volatility index,
also edged up to 20.9, slightly above Friday's close of 19.46,
but way off the 50 points it hit during the peak of the
Rite Aid rose 6.3 percent after grocery chain
operator Albertsons Companies said it would buy the part
of the drug retailer that is not being bought by Walgreens Boots
Snapchat operator Snap slid 5.4 percent after
Citigroup downgraded the stock to "sell", arguing negative
reviews on an app redesign might lead to a decline in users.
Home Depot rose nearly 1.6 percent after the largest
U.S. home improvement chain's quarterly profit beat market
estimates for the sixth straight quarter.
Of the 399 companies in the S&P 500 that reported fourth
quarter earnings through Friday, 76.4 percent have topped profit
expectations, according to Thomson Reuters I/B/E/S. That is
above the average 72 percent beat-rate over the past four
Declining issues outnumbered advancers on the NYSE by 1,617
to 980. On the Nasdaq, 1,550 issues fell and 956 advanced.
(Reporting by Sruthi Shankar and Aparajita Saxena in Bengaluru;
editing by Patrick Graham and Anil D'Silva)
First Published: 2018-02-20 14:29:57
Updated 2018-02-20 17:12:30
© 2018 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.