Wall Street Plunges as Wal-Mart's Warning Takes Center Stage

Wall Street took a turn for the worse midday as Wal-Mart's disappointing earnings warning overshadowed reports from the nation's biggest banks. The retail giant's shares plummeted nearly 10% after the company revealed plans that will cut into its earnings over the next few fiscal years. The Dow fell 90.13 points, or 0.53%, to 16,991.76, while the Nasdaq dipped 5.10 points, or 0.11%, to 4,791.51.

Key Takeaways:

• Wal-Mart's shares experienced their largest one-day decline in 15 years, falling nearly 10% to $60.12.
• The company expects its sales growth over the next three years to range between 3%-4% annually, adding approximately $45B-$60B in sales.
• Wal-Mart's fiscal year 2017 will see the heaviest investment period, with earnings per share expected to decline between 6%-12% due to investments in wages and training.
• Intel (INTC) initially dropped after reporting third-quarter earnings but was upgraded to Buy by Summit Research analyst Srini Sundararajan, who stated the chipmaker is improving in data center and cloud growth.
• Major movers included SanDisk (SNDK) and Micron (MU), which rallied 12% and 3.7% respectively after reports of a potential merger between SanDisk and either Micron or Western Digital (WDC).
• TripAdvisor (TRIP) gained 22% after announcing an instant booking partnership with Priceline (PCLN).
• BofI Holding (BOFI) dropped 24% after a former internal auditor sued the company, claiming he was fired after revealing what he believed to be wrongdoing.

Statistics:

• Dow fell 90.13 points, or 0.53%, to 16,991.76.
• Nasdaq dipped 5.10 points, or 0.11%, to 4,791.51.
• S&P 500 fell 3.86 points, or 0.19%, to 1,999.83.
• Wal-Mart's shares fell nearly 10% to $60.12.
• SanDisk (SNDK) rallied 12%.
• Micron (MU) rallied 3.7%.
• Western Digital (WDC) fell nearly 1%.
• BofI Holding (BOFI) dropped 24%.

Sources:

• TheFlyOnTheWall.com via COMTEX, October 14, 2015, 12:37 EDT.