Stock futures fall after Walmart cuts forecast, says inflation hit consumer spending

Retail stocks plummeted after Walmart cut its profit forecast.

S&P 500 futures fell by 134 points. The S&P 500 and the Nasdaq 100 fell.

A late Monday announcement from Walmart, which cut its quarterly and full-year profit estimates because of rising food inflation, alarmed investors. Consumers are pulling back on general merchandise spending due to higher prices.

Walmart dragged other retailers with it. Both Target and Amazon declined. Dollar General and Macy's each lost 3% of their value.

Jeremy Bryan, senior portfolio manager at Gradient Investments, said during CNBC's "Closing Bell" that they have the wrong stuff and need to sell it more aggressively.

Is this related to the rest of the discretionary space? Bryan said something else.

The S&P 500 traded in a narrow range with a small gain. The index gained 90.75 points. The tech heavy index fell 0.4%. The major averages are on course for their best month of the year.

Wall Street's expectations for the rest of the year will be helped by an onslaught of mega-cap tech earnings and economic data this week, as well as the outcome of the Federal Reserve meeting.

During CNBC's "Closing Bell: Overtime," the managing director of VantageRock Capital said he thinks there will be a bifurcated market. The bottom may be in a few stocks, but not in others. This could be one of the most dynamic earnings seasons in years.

The Federal Reserve will meet on Tuesday and Wednesday. A three quarter percentage point hike is expected by traders.

Coca-Cola, McDonald's and GM are expected to report earnings on Tuesday. The companies will report after the bell.

The Case-Shiller Home Price index will be released at 9 a.m. There is an hour and a half later. The consumer confidence report will be released at 10 a.m. There is an hour and a half later.