Wal-Mart hopes dashed as Asda chain hits record low sales growth

The Dow Jones industrial average was up 39 points, or 0.2%, to 16,493 as of 10:30 a.m. Eastern time.

The pan-European FTSEurofirst 300 index was 0.1 percent lower at 1,293.92 points by the close, having touched 1,304.97 points earlier in the session – its highest level since February 4. The Standard & Poor’s 500 index was fell 8 points, or 0.4 percent, to 1,918. Shares have been up around 8 percent so far this year, after falling almost 30 percent last year. That rally erased about half of the index’s losses since the beginning of the year.

Wal-Mart now expects net sales to be “relatively flat” this year, compared with a previous forecast for an increase of as much as 4 percent, according to a statement Thursday.

But in recent weeks, the retail giant has offered going-out-of-business discounts while closing underperforming stores, causing revenues to shrink.

Consolidated revenue declined 1.4 percent to $129.7 billion, but Wal-Mart said it would have increased 2.2 percent if not for the dollar’s rise.

Wal-Mart Stores Inc.WMT -2.71 % says it clamped down on inventory growth in the past year and reduced shipping costs while putting more goods on store shelves in front of consumers. That’s well under Amazon’s 22 percent fourth-quarter growth and 20 percent gain previous year.

The stock lost $2.87, or 4.3 percent, to $63.24. Brent crude, a benchmark for global oils, rose 25 cents to $34.76 a barrel in London. Oil prices have surged recently as major oil-producing nations continued to talk about a deal that could limit production. That would help address a giant supply glut.

IRAN RELIEF: Iran’s oil minister said the country supports “any measure” to boost oil prices and voiced its support for a plan to stabilize and boost prices laid out earlier this week by four influential oil producers. “Walmart’s decision is part of a larger shift that will be played out across all parts of the retail sector over the coming year and beyond”.

UNEMPLOYMENT: Weekly applications for unemployment benefits declined last week to a three-month low, a sign that hiring has remained solid despite big swings in the market. Loeb said consumers are spending cautiously because they are anxious about job security and aren’t sure if the US economy will keep growing. Those stocks had made big gains over the last three days as the market rallied. The company provided earnings per share (EPS) guidance of $0.80-0.95 for the period, compared to the Thomson Reuters consensus estimate of $0.91, Analyst Ratings Net reports.

BIG BLUE BOUNCE: IBM climbed after the company said it will buy Truven Health analytics for $2.6 billion, expanding the health care capabilities of its Watson cognitive computing system. Revenue, though, fell to $128.7 billion, missing forecasts.

CHANNEL CHANGED: Discovery Communications, the operator of TV channels such as TLC and Animal Planet, stumbled after it posted disappointing profit and revenue in the fourth quarter. Wal-Mart said operating income fell 16 percent to $6.6 billion in the quarter.

OVERSEAS: Germany’s DAX rose 1.2%, and France’s CAC 40 added 0.6%, but Britain’s FTSE 100 slipped 0.9%. The stock has a market cap of $205.31 billion and a P/E ratio of 13.73. Japan’s Nikkei 225 jumped 2.3%, and South Korea’s Kospi rose 1.3%.