Walmart cautious, futures lower, Iran tensions rise

Futures point lower as investors weigh cautious guidance from Walmart and rising geopolitical risk tied to Iran. Dow futures fall about 166 points, with the S&P 500 and Nasdaq 100 also in the red. Markets are watching consumer data and oil prices for the next signal.

Walmart modestly beat Q4 expectations, with revenue up 5.6% to $190.7B. But management guided fiscal 2027 net sales growth of 3.5% to 4.5%, citing an unstable macro backdrop and softer sentiment. The retailer now reports as a trillion-dollar company and faces new comparisons with Amazon, whose annual sales have surpassed Walmart’s.

Strategists call this a “weird market,” with money rotating out of tech into smaller sectors like energy and staples. Tech valuations have reset, but earnings growth remains strongest there. Oil near $60 limits consumer pressure for now, even as tensions with Iran lift uncertainty.

Trending Tickers: Deere lifts profit outlook on farm recovery; Occidental Petroleum beats on sales and capital expenditures; Etsy jumps after selling Depop to eBay for $1.2B.

Takeaways:

• Futures fall on cautious guidance and Iran headlines

• Walmart guides conservatively despite Q4 beat

• Amazon sales now exceed Walmart annually

• Sector rotation drives dispersion across the market

• Oil remains contained, limiting inflation risk

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