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Updated Thu, Feb 20, 2025, 1:05 PM 1 min read
In This Article:
US stocks pulled back on Thursday as investors scrutinized Walmart's (WMT) outlook and assessed the impact of President Trump's planned tariffs and policy shifts.
The Dow Jones Industrial Average (^DJI) fell roughly 450 points, or around 1%. The S&P 500 (^GSPC) dropped 0.5%, pulling back after its second record close in a row on Wednesday, while the tech-heavy Nasdaq Composite (^IXIC) also lost about 0.5%.
Worries grew about coming headwinds for corporate America after Walmart beat on quarterly profit but issued cautious 2026 fiscal year guidance. Shares of the retail giant tumbled more than 6%. Walmart's decline combined with more roughly 4% drops in Goldman Sachs (GS) and JPMorgan (JPM) weighed on the Dow.
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One looming challenge is Trump's tariffs, which have prompted the likes of General Motors (GM) to consider big changes to their business. The latest in his policy overhaul is a planned 8% cut in Pentagon spending, which dragged on Palantir's (PLTR) stock down about 5%.
Markets were already warily waiting for Trump's next move, after a clash with Ukraine's president put geopolitical fears front of mind. Gold (GC=F) hit a fresh record high as investors lost appetite for risk.
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Walmart's worst day in more than a year weighs on the Dow
Potential Trump policy disruptions 'may not be priced in' to stock market rally, Citi says
Uncertainty around potential policy changes from President Trump has done little to deter the stock market rally in 2025 with the S&P 500 sitting just below its latest record high reached on Wednesday.
But some on Wall Street are growing concerned that much of the positive news surrounding Trump's impending policies could be priced in, leaving more room for disappointment than an upside surprise once more clarity on what's next in Washington is provided.
"S&P 500 price action signals that investors continue to view a “pro-business” bias to the platform," Citi US equity strategist Scott Chronert wrote a note "We don’t disagree but also argue that related policy disruptions to fundamentals may not yet be priced in."
Chronert added that there hasn't been a significant change to their full view, which includes a year-end target of 6,500, but for now his team sees "more near-intermediate term downside risk to Trump policy effects than upside opportunity."
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CEO confidence hits 3-year high
Chief executives haven't been this confident in their business outlook in three years.
Data released Thursday showed the Conference Board's measure of CEO confidence increased by nine points in the first quarter of 2025 to a reading of 60, its highest level in three years. The Conference Board added that the move above 50 indicates a shift from "cautious optimism" to "confident optimism" among business leaders.
The survey included responses from 134 US CEOs and was conducted between Jan. 27 and Feb. 10.
“The improvement in CEO Confidence in the first quarter of 2025 was significant and broad-based,” Stephanie Guichard, senior economist of global indicators at the Conference Board said in the release. “All components of the Measure improved, as CEOs were substantially more optimistic about current economic conditions as well as about future economic conditions — both overall and in their own industries."
A tough day for some 2025 stock market leaders
After hitting a record-high on Wednesday, risk-off sentiment has swept the market on Thursday and some of 2025's biggest winners are feeling the pain the most.
Shares of Intel (INTC), Crowdstrike (CRWD) and Palantir (PLTR) — which had all experienced recent rallies and were among the top 10 performers in the S&P 500 in 2025 — were all off 3% or more.
The Financials sector (XLF), among the top gaining sectors in the S&P 500 for the year, led the losses among the 11 sectors on Thursday, falling more than 2%. Goldman Sachs (GS), JPMorgan (JPM) and Morgan Stanley (MS) were all off more than 4%. All three stocks had been up at least 10% this year.
Energy stocks lead year-to-date as natural gas prices soar
Thanks to natural gas, energy stocks have been outperforming other sectors and the broader market.
On Thursday the S&P 500 Energy ETF (XLE) was up more than 7% year-to-date, compared to the broad-based index's rise of 3.5% during the same period.
“The energy strength is in natural gas (boosted by cold weather), pipelines, and midstream companies,” Louis Navellier, founder and chief investment officer of Navellier & Associates, told Yahoo Finance.
Natural gas prices recently hit multi-year highs amid colder-than expected weather and optimism over increasing exports.
Read more here.
Walmart CFO defends its conservative guidance as Wall Street remain high on the stock after its plunge
Yahoo Finance's Brooke DiPalma reports:
Walmart's (WMT) CFO is looking to assuage fear among investors that 2025 won't be as strong as in recent years.
"They're conflating our guidance with ... maybe suggesting that we're feeling like things aren't as good, or the economy is softer," John David Rainey told Yahoo Finance over the phone. "Let me be very clear: That's not the case. We feel really good about how we're doing."
Shares of the retail giant sank more than 6% in trading on Thursday after it put forth conservative 2026 fiscal year guidance, which it has done for the past two years. It projects net sales to increase between 3% and 4%, in line with a target of 4% annual sales growth it laid out years ago.
Read more here.
Amazon gains creative control of 'James Bond' franchise
Amazon's MGM Studios (AMZN) is getting creative control of the storied "James Bond" franchise as the company looks to deepen its position in the streaming wars, the company announced on Thursday.
The studio will form a joint venture to acquire the intellectual property rights from producers Barbara Broccoli and her stepbrother Michael Wilson. The pair, who has long held creative control, will remain co-owners of the franchise, along with Amazon. Financial terms of the deal were not disclosed.
“With my 007 career spanning nearly 60 incredible years, I am stepping back from producing the James Bond films to focus on art and charitable projects,” Wilson said in a statement. “Therefore, Barbara and I agree, it is time for our trusted partner, Amazon MGM Studios, to lead James Bond into the future.”
Amazon purchased Hollywood studio MGM Holdings in 2022 for $8.45 billion, including debt, as it worked to beef up its streaming service to better compete with the likes of Netflix (NFLX) and Disney (DIS).
At the time, Wall Street analysts and Hollywood watchers praised the deal, which gave Amazon access to a catalog of more than 4,000 movies, including the "James Bond" franchise, and 17,000 TV shows like "Fargo" and "The Handmaid's Tale." Notably, the deal only included distribution rights.
The company had long been at odds with Broccoli and Wilson, who had the power to decide when the "James Bond" films would go into production, as well as casting choices and the overall direction of storylines.
Now, Amazon will have that power. The franchise is currently searching for its next James Bond after Daniel Craig stepped away from the role in 2021.
Delta offers $30,000 to passengers onboard the flight that crashed in Toronto
Pras Subramanian reports:
Delta Air Lines (DAL) said it would pay passengers onboard the Minneapolis-to-Toronto flight that crash-landed $30,000 a piece, with no strings attached.
A company spokesperson confirmed the payment offer to Yahoo Finance. The number of passengers who took up Delta on the offer is currently unknown.
As of Thursday morning, all 21 passengers who were taken to the hospital following the Feb. 17 crash of Delta Flight 4819 have now been discharged, per Delta’s website. None of the 76 passengers on the plane were killed in the crash.
The payment offer to passengers — which would amount to $2.3 million if all passengers take the deal — does not preclude passengers from bringing lawsuits against Delta for the incident.
Delta shares declined more than 2% on Thursday morning amid a broader market sell-off.
Read more here.
Palantir stock slides again on concerns about Pentagon spending cuts
Palantir stock dropped more than 11% on Thursday amid concerns about Pentagon spending cuts.
The sell-off in shares of the software contractor continued, after they dropped more than 10% in the prior session. The declines came after Defense Secretary Pete Hegseth told Pentagon agencies and the military to slash budgets by 8% over the next five years.
As Yahoo Finance's Laura Bratton reports, Wedbush analyst and Palantir bull Dan Ives was quick to defend the tech firm's ability to weather the potential budget cuts.
"[I]n our view Palantir's unique software approach will enable the company to gain MORE ... budget dollars at the Pentagon ... not less despite these initial knee jerk reactions from the Street," Ives wrote in a note to investors on Thursday morning.
Alibaba stock surges as Chinese tech giant touts 'robust' AI momentum
Yahoo Finance's Laura Bratton reports:
Alibaba's (BABA) US-listed stock surged 9% on Thursday after the Chinese tech giant's results delivered an earnings beat and revealed an aggressive push into AI.
“Our AI momentum remains robust with AI related product revenue sustaining triple digit growth for the sixth consecutive quarter,” Alibaba CFO Toby Xu told analysts on a call Thursday morning.
Read more here.
Consumer Discretionary stocks and Financials leads losses
The Consumer Discretionary (XLC) and Financials (XLF) sectors led market losses in early trading on Thursday.
Shares of Walmart (WMT) slid more than 5% after the retail giant issued a cautious outlook. Other consumer-oriented stocks fell along with Walmart, including Target (TGT), Costco (COST), and BJ's Wholesale (BJ).
Healthcare (XLV) and Energy (XLE) stocks were in the green territory as the major averages sank.
Dow, S&P 500 slide as Walmart shares sink
The major averages opened lower on Thursday as shares of Walmart (WMT) slid more than 4% after the company issued a conservative outlook and investors digested the potential impact of President Trump's tariff and government overhaul policies.
The S&P 500 (^GSPC) edged back 0.2% from its record closing high. The Dow Jones Industrial Average (^DJI) dropped 0.3% while the tech-heavy Nasdaq Composite (^IXIC) also backed off nearly 0.2%.
DJI - Delayed Quote USD
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Walmart's quarterly profit and revenue met high expectations, but the company's outlook for 2025 was putting pressure on the stock on Thursday morning.
For its fiscal year 2026, Walmart issued conservative guidance, as it has done for the last two years. The company anticipates net sales to increase between 3% and 4%.
Meanwhile, industries across the board are assessing what President Trump's evolving tariff policies will mean for business.
On Thursday, shares of software contractor Palantir (PLTR) extended declines from the previous session following a report of an 8% cut in Pentagon spending over the next five years.
Carvana stock slides after run-up, despite earnings beat
Online car retailer Carvana (CVNA) posted stronger-than-expected revenue and profit on Wednesday as it continues to emerge from a period of turbulence.
Despite the earnings beat, investors hit the brakes on the stock. Carvana shares fell over 8% in premarket trading on Thursday, having recently hit a fresh 52-week high.
Yahoo Finance’s Pras Subramanian reports:
Walmart stock sinks amid cautious 2025 outlook
Walmart (WMT) was the highlight of Thursday's earnings docket, as the retailer beat on earnings and showed it continued to be a destination for inflation-weary shoppers.
But its stock was down some 8% in premarket trading as it guided cautiously for the upcoming year.
Good morning. Here's what's happening today.
Alibaba stock jumps as earnings show signs of comeback
Alibaba shares surged almost 7% in premarket trading after the Chinese online retailer posted better-than-expected quarterly revenue.
Gold hits fresh record high as investors seek shelter
Worries about geopolitics grew after President Trump called his Ukrainian counterpart a "dictator," driving a rush to gold and other less-risky assets on Thursday.
Morgan Stanley reverses views on Chinese bear market
Morgan Stanley (MS) strategists have adopted an optimistic outlook on Chinese stocks, overturning a previously bearish view of the region. This is the latest in a wave of Wall Street support forecasting a rise driven by tech advancements in the country, specifically around AI.
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