New York, Jan 20, 2026, 10:59 ET — Regular session
- Costco shares slip during morning trading amid a broader market downturn sparked by tariff concerns
- Retail rivals slip as investors question pricing power amid rising costs
- Upcoming catalysts include a January sales update on Feb. 4 and quarterly results due March 5
Shares of Costco Wholesale dipped Tuesday, dragged down amid a wider sell-off in U.S. stocks triggered by fresh tariff concerns that rattled investors’ risk appetite.
The stock slipped roughly 0.7% to $957.29 in late-morning trading, moving within a range from $954.23 to $968.37. Retail rivals also fell: Walmart dropped 1.2%, Target lost 3.1%, and BJ’s Wholesale slid 1.8%.
Why it matters now: investors are zeroing in on how fast big retailers can shift rising costs onto consumers without hurting demand, particularly for discretionary goods.
The worry grew sharper when Amazon CEO Andy Jassy revealed tariffs are starting to “creep into” some prices on Amazon’s platform, as sellers weigh whether to eat the costs or pass them onto consumers. (Source: https://www.reuters.com/business/davos/tar…)
Markets are already on edge after the tone shifted. The Cboe Volatility Index, Wall Street’s so-called “fear gauge” based on S&P 500 options, hit an eight-week peak Tuesday. The S&P 500 dropped 1.5% as well. (Source: https://www.reuters.com/business/volatilit…)
“We’ve definitely seen a notable shift in the risk metrics,” said Jim Carroll, senior wealth adviser and portfolio manager at Ballast Rock Private Wealth, in the Reuters report. He added it’s not yet a “hair on fire” situation. (Source: https://www.reuters.com/business/volatilit…)
Costco’s recent moves seem focused on the near term, eyeing the January sales figures set for release on Feb. 4. (Source: https://investor.costco.com/events-and-pre…)
Costco will report its next quarterly earnings on March 5, with February sales figures included, the company’s investor relations page shows. (Source: https://investor.costco.com/events-and-pre…)
Investors have been using monthly sales figures to gauge traffic, ticket size, and e-commerce trends, especially amid headline-driven market swings. Earlier this month, Costco said its December net sales climbed 8.5% year-over-year for the five weeks ending Jan. 4. (Source: https://investor.costco.com/news/news-deta…)
The risk is simple: an expansion of tariffs or continued policy uncertainty could push up landed costs for retailers and spike demand volatility. Given the sector’s valuation premium, there’s less cushion for any setbacks.
Costco shareholders should watch for the January sales update on Feb. 4, followed by the March 5 earnings report. Management will provide insights on pricing, freight costs, and member spending during that call. (Source: https://investor.costco.com/events-and-pre…)
