Walmart Drags the US Stock Market Lower08/20 09:32

   A rise in oil prices on Thursday is sending worries about inflation and 
yields in the bond market higher, erasing some of the relief the U.S. Treasury 
Department created the day before. A drop for Walmart following its latest 
profit report helped drag the U.S. stock market lower.

   NEW YORK (AP) -- A rise in oil prices on Thursday is sending worries about 
inflation and yields in the bond market higher, erasing some of the relief the 
U.S. Treasury Department created the day before. A drop for Walmart following 
its latest profit report helped drag the U.S. stock market lower.

   The S&P 500 slipped 0.4% and is on track for a fourth loss in the five days 
since setting its all-time high last week. The Dow Jones Industrial Average was 
down 430 points, or 0.8%, as of 10:15 a.m. Eastern time, and the Nasdaq 
composite was 0.7% lower.

   The bond market remains the center of action after yields charged higher 
through the summer on worries about high inflation, gargantuan government debts 
and other factors. Treasury Secretary Scott Bessent made a move Wednesday that 
jolted financial markets to at least double the size of his department's 
planned purchases of longer-term Treasurys from Sept. 9 through Nov. 4.

   That helped push yields down after the 10-year Treasury's yield had hit its 
highest level in more than a year and the 30-year yield got back to where it 
was in 2007, before the Great Recession sent yields toward zero worldwide. It's 
a big deal because high yields slow the economy by raising interest payments 
for people, companies and the government, and they can undercut prices for 
stocks and other investments.

   But analysts had cautioned the effect may be short lived, given how small 
the purchases are relative to the overall size of the Treasury market and how 
they don't fix the fundamental concerns of investors that had driven up yields. 
Plus, more signals arrived quickly to push worries higher.

   The U.S. government's debt topped $40 trillion on Wednesday, a staggering 
record that arrived just months after the national debt first blew past the $39 
trillion mark in April, because Washington continues to spend far more money 
than it brings in.

   And on Thursday, the price for a barrel of Brent crude climbed 2.5% to 
$93.90 as uncertainty continues about when the war with Iran will allow oil 
tankers to freely exit the Persian Gulf again. President Donald Trump 
threatened Iran with "the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST 
ANY COUNTRY" late Wednesday but provided few details.

   That helped push the 10-year Treasury yield up to 4.69% from 4.65% late 
Wednesday. It's almost back to its 4.71% level from late Tuesday, before the 
Treasury Department made its announcement.

   A couple encouraging reports on the U.S. economy also helped push up 
longer-term Treasury yields, which move with expectations for the economy and 
inflation in coming years. One said fewer U.S. workers applied for unemployment 
benefits last week than economists expected, while another said manufacturing 
in the mid-Atlantic region appears to be much stronger than expected.

   On Wall Street, Walmart was the heaviest weight on the S&P 500 and fell 8.7% 
even though it reported stronger profit and revenue for the latest quarter than 
analysts expected. Investors focused instead on how an important underlying 
measure of revenue growth at its stores slowed again. Its forecast for profit 
in the current quarter also fell short of analysts' expectations.

   Given its massive size, Walmart offers a look at how shoppers are doing 
across the United States. A surprisingly weak update on sales at U.S. retailers 
overall last month had raised worries that shoppers may be succumbing to 
pressure from high inflation and a job market that may be looking less solid.

   Advance Auto Parts tumbled 22.2% after the retailer reported weaker revenue 
for the latest quarter, even though its profit topped expectations. CEO Shane 
O'Kelly said that "tighter household budgets constrained spending more than we 
anticipated, especially during the last four weeks of the quarter."

   Spending by U.S. consumers is the main engine of the economy, and a pullback 
by them could exacerbate what's already a slowdown in growth for the economy.

   A pullback could also mean a double-whammy for travel companies, which would 
see fewer bookings when they have to pay higher prices for fuel. Norwegian 
Cruise Line Holdings fell 4.2%, while United Airlines sank 2.6% and American 
Airlines lost 2.5%.

   Helping to keep Wall Street's losses in check was Deere, which reported 
stronger profit and revenue for the latest quarter than analysts expected. It 
rose 4.1% as the company said order trends indicate the agriculture equipment 
business looks set to accelerate after this year.

   Oil companies also rose with gains for crude prices. Exxon Mobil added 1.8%, 
and ConocoPhillips climbed 3%.

   In stock markets abroad, indexes dipped in Europe following a stronger 
finish in Asia.

   South Korea's Kospi soared 5.9% for one of the world's biggest moves after 
the two tech titans that dominate its market, Samsung Electronics and SK Hynix, 
jumped. Such swings have become more common for Seoul's market, which has borne 
the brunt of rising and falling worries that winning stocks in the 
artificial-intelligence boom may have shot too high.