Walmart promises price cuts after $2.9B tariff refund

Walmart reported its slowest U.S. comparable sales growth in six years, with shares down over 8%. Oil price increases and inflation concerns led to stock market declines, with the S&P 500 falling 0.9%. US unemployment claims dropped to 206K, and mortgage rates eased slightly to 6.65%.

Major US retailers reported Q2 earnings, revealing $5B in Trump tariff refunds. Home Depot, Target, Lowe's, TJX, and Walmart received funds, with Walmart getting $2.9B. Companies used refunds to cut costs, boost profits, and pay bonuses, but not to lower prices for consumers. Lowe's lowered its annual projections. Tariffs have increased consumer costs by $1,100 annually, per Yale Budget Lab.

Walmart reported its slowest U.S. comparable sales growth in six years, with net income of $6.37bln and sales up 5.9% to $187.94bln. Alibaba's Q2 2026 revenue rose 9% to RMB268,953mln, but income from operations fell 57%. Ocado partnered with nemlig, a Danish online supermarket. Other retailers announced expansions and initiatives, including Lidl, Tesco, Waitrose, Dino Polska, and M&S.

The US Court of Appeals vacated the DOT's order to unwind the Delta Aeroméxico joint venture, calling the DOT's analysis arbitrary. The alliance retains antitrust immunity. The court did not rule on competition but on the DOT's process. Delta and Aeroméxico control ~60% of Mexico City-US operations. Walmart froze prices on 4,000+ products in Mexico for 90 days, potentially impacting inflation. Separately, Mexico's workweek will reduce to 46 hours by 2030, increasing employer costs.

Walmart shares dropped 9% on Thursday, the worst single-day decline in four years, after weak guidance and same-store sales miss. JPMorgan maintains an overweight rating, lowering its price target to $125 from $137, citing long-term growth potential and alternative profit pools. 40 of 44 analysts rate the stock buy or strong buy.

Walmart reported its first comparable-sales loss in six years, falling 9% in trading. The company attributed the decline to temporary pricing pressure in its pharmacy business. Other retailers like Home Depot, Lowe's, and TJX also reported weak demand. July retail sales unexpectedly declined 0.6%, and consumer sentiment decreased. The US lost 23,000 jobs in July, missing forecasts. These signs may impact Fed rate decisions and inflation control efforts.