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Walmart Misses Earnings Estimate

Here is some bad and very surprising news: Walmart missed its earnings forecast which they issued mid-way through the quarter. Ouch. They don't do that.

They announced early this morning before the market opens. The futures were all positive for stocks and oil, then turned lower based upon the announcement. Walmart stock is off 10% as I write this in the pre-market trading.

This will have a negative impact on sentiment and may turn the timing indicator back into sell mode. Not good. Once the market opens, we will see if traders shake this off or if it will push the market lower today. If this was any other company, it might not be so bad, but Walmart is viewed as the proxy for the US consumer – if their sales are below forecast then the economy is softer than the economists understand.

We'll be watching this closely. On a positive note, the low bids we put in to buy some equities with the cash we have on-hand might actually hit.