US stock futures showed little movement on Friday morning following a steep drop in the major stock indices the previous day. Futures tied to the S&P 500, Nasdaq, and Dow Jones Industrial Average hovered near the baseline, indicating a flat start to the day after a Walmart earnings warning led to a broad market downturn.
Walmart’s Warning Impact on the Market
Walmart shares were hit hard after the retail giant issued a weak earnings outlook for 2025. This sparked a sell-off in the broader market, as investors reacted to concerns about the retail environment and future profitability. Walmart attributed part of its uncertainty to tariffs, which continue to disrupt supply chains and pricing strategies.
The company’s CFO shared that price hikes on electronics and general merchandise could be passed on to consumers if tariffs continue to pressure Walmart’s bottom line, adding to concerns about future consumer spending.
Economic Data and Market Outlook
Friday is shaping up to be a quiet day for economic data. The existing home sales report for January will offer insight into the health of the housing market, while a consumer sentiment report from the University of Michigan is also expected to be released. These data points could provide a clearer picture of consumer confidence and housing demand.
Notable Movers in After-Hours Trading
In after-hours trading, some companies saw notable movements:
Celsius Holdings (CELH) saw its stock surge by over 35% after announcing a $1.8 billion acquisition of competitor Alani Nutrition. This strategic move is likely to strengthen Celsius’ position in the energy drink market.
Dropbox (DBX) shares fell by over 6% in extended trading, after the company revealed that customer growth had slowed. This raised concerns among investors about the company’s future growth prospects.
Meta’s Record Year and Employee Compensation Cuts
Meta (META) continues to dominate headlines with impressive performance. On Thursday, the company announced that it would be cutting equity awards for most of its employees, reducing stock options by around 10% for 2025. Despite this move, Meta continues to perform well, marking a record-setting year in terms of gains. The announcement regarding equity cuts may be seen as a strategy to manage costs while maintaining a competitive workforce.
Conclusion
While US stock futures remain relatively flat on Friday morning, the Walmart earnings warning and uncertainty around tariffs continue to weigh heavily on investor sentiment. With minimal economic data and earnings reports expected for the day, market participants will be closely watching any further developments in the retail sector and broader economic indicators. Celsius and Dropbox are in the spotlight due to their after-hours movements, while Meta remains a standout despite making changes to employee compensation.
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