Stocks slide on Walmart's bleak outlook | Shopify shares dip | How to tell whether we’re in a recession

Stocks tumbled on Tuesday, dragged lower by Walmart's disappointing profit outlook.

VIEW IN BROWSER | SUBSCRIBE TUE, JUL 26, 2022 EVENING BRIEF AS OF TUE, JUL 26, 2022 • 05:43 ET DJIA 31761.54 -0.71% -228.50 S&P 500 3921.05 -1.15% -45.79 NASDAQ 11562.58 -1.87% -220.09 Most Active DOW NAME LAST CHG %CHG AAPL 151.60 -1.35 -0.88% MSFT 251.90 -6.93 -2.68% INTC 38.96 -0.20 -0.51% S&P 500 NAME LAST CHG %CHG AMD 85.25 -2.29 -2.62% CCL 8.50 -0.68 -7.41% AMZN 114.81 -6.33 -5.23% NASDAQ NAME LAST CHG %CHG AMD 85.25 -2.29 -2.62% AMZN 114.81 -6.33 -5.23% AAPL 151.60 -1.35 -0.88% EDITOR'S NOTE Stocks tumbled on Tuesday, as Walmart's disappointing profit outlook dragged investors' sentiment. The big-box store's announcement forced investors to reevaluate consumers' strength and its ability to steer the economy away from a potential recession.   Walmart was at the center of attention a day after it cut its quarterly and full-year profit estimates. The retailer said rising inflation is pushing consumers to cut back their spending on general merchandise and instead direct their dollars toward food and fuel. Shares ended the day down 7.6%.   Retailers suffered on Tuesday. The SPDR S&P Retail ETF finished lower by more than 4%. Apparel companies were among the hardest hit. Macy's lost 7.2%, while Nordstrom and Ross shed more than 5% each. "The consumer is really starting to feel the pressure of inflation, especially the lower-end consumer," said Stephanie Lang, chief investment officer of Homrich Berg. "It's really starting to affect those businesses not only in overall demand – they're really seeing a change in behavior, that consumers are shifting away from some of these higher ticket price items and the brand names." Shares of Shopify tumbled 14% on news the company will cut 10% of its global workforce.  CEO Tobi Lutke said the business has seen a pullback in online spending and that he misjudged how long the pandemic-fueled e-commerce boom would last. Amazon, Block and PayPal, all of which serve online merchants, posted big declines as well. There were some earnings winners Tuesday, including Coca-Cola, McDonald's, 3M and General Electric. Some investors, including Lang, remain concerned that if the Federal Reserve continues its goal of lowering inflation, it could mean weaker top lines for corporations.  The central bank began its two-day meeting Tuesday. Investors are expecting a three-quarter percentage point hike to be announced Wednesday afternoon. Tanaya Macheel | Markets and Investing Reporter @tanayamac Watch our live stream for all you need to know to invest smarter. TOP NEWS  Dow sheds more than 200 points after Walmart profit warning, S&P 500 falls 1% Here's how to know if we're in a recession, and it's not what you think Natural gas hits highest level since 2008, on pace for best month ever as Russia cuts supply Walmart's slashed profit outlook sends warning about state of the American consumer Shopify stock sinks 14% after company says it will lay off 10% of workers Bill Ackman says Powell must show resolve against inflation, can't signal Fed will reverse course Apple's earnings will give a peek into the mindset of the high-end consumer Why some analysts suggest the Walmart washout might be a rare chance to buy Homebuilders are boosting incentives as they suddenly struggle to sell homes Student loan servicers told to hold off on sending out billing notices, a sign payment pause may be extended TOP VIDEO Long-term investors need to put money into semis, says Wells Fargo's Mark Smith CNBC PRO These small-cap ETFs can help investors ride out a recession, Bank of America says SPECIAL REPORTS Millennials' average net worth more than doubled during the pandemic. Here's what advisors say they should do next Gen Z is stashing away 14% of income for retirement — more than older generations, study shows Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy © 2022 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS