The Walton family suffered a paper loss of more than NOK 160 billion after Walmart’s numbers were worse than expected.
This is how it ended on Wall Street on May 17:
- The S&P 500 rose 2.02 percent
- Nasdaq rose 2.76 percent
- The Dow Jones rose 1.34 percent
In both Asia and Europe, there was a generally positive mood in the stock market throughout the day.
Fed Summit Jerome Powell, speaking during an event in the Wall Street Journal on Tuesday, said, among other things, he would not hesitate to raise interest rates above the “neutral level” of 2.5 percent, which many central bank leaders have said. Bloomberg indicated the target by the end of the year.
“What we need to see is inflation coming down clearly and convincingly and we’re going to keep pushing until we see it,” Powell said.
Weaker than Walmart
But there are always losers in the brush.
Wall Street punished Wal-Mart hard after the supermarket giant reported weaker-than-expected quarterly numbers, while lowering expectations for the rest of the year.
Earnings increased 2.4 percent in the first quarter of this year (February-April), but earnings per share were 12 percent lower than expected.
Higher fuel prices, increased inventory and more hiring are justified, according to CNBC.
These factors contribute to Walmart warning the market now that 2022 will not be as good as it seemed at the start of the year. Then it’s time to achieve “low single digit or medium high” earnings growth. And now it’s headed for “flat or slightly upward” growth.
Paper loss in the billionth category
Wal-Mart fell more than 11 percent after the lead.
This means a huge leaf loss for the Walton family, who are the richest in the United States.
Founder Sam Walton’s sons – Alice, Jim and Rob – as well as daughter-in-law Kristi and son-in-law own just under half of the largest grocery chain in the United States.
As of Wednesday, they’ve seen about $17 billion disappear into smoke, according to Bloomberg.
This corresponds to approximately 164 billion NOK.
Buffett’s purchases send stock
Late Monday night, Warren Buffett’s Berkshire Hathaway arrived with stock at the end of the first quarter. And he showed that the investment group during the period acquired the shares of Citigroup, with a value of three billion dollars, according to what he explained Bloomberg.
The news contributes to the rise of Citigroup above eight percent. At the same time, other banks such as Bank of America and JP Morgan also rose more than 3.5 percent.
Berkshire has also made a major acquisition of Paramount Global Media Group. Here, Buffett’s company owned $2.6 billion in stock at the end of March. This was the eighteenth largest investment in Buffett’s portfolio.
Paramount Global shares rose nearly ten percent. At the same time, the energy giant and rival Netflix rose 1.36%.
Focus on Twitter continues after Elon Musk wrote this morning on the service that the agreed acquisition “cannot go forward” unless Twitter provides evidence that the proportion of spam users is less than five percent.
Twitter head Parag Agrawal said Monday night in a lengthy thread that the company’s internal estimates show that in the past four quarters there have been “significantly less” five percent of spam users on the platform.
Hours after Musk’s message on Twitter, Twitter wrote in an announcement that they were “obligated to complete the deal at the agreed-upon price,” according to financial times. This is happening despite Musk firing on Monday during speculation that he wants to renegotiate the price.
Twitter shares rose 2.5 percent on Tuesday, after falling more than 8 percent the previous day. The entire recovery from the period since Musk announced his ownership on Twitter has evaporated.
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