New York, January 27, 2026, 11:33 EST — Regular session
- Costco shares dropped roughly 1.3% in early trading
- U.S. consumer confidence hits its lowest point since 2014
- Investors gear up for the Fed’s decision and Costco’s upcoming monthly sales report
Shares of Costco Wholesale Corporation (COST.O) dropped 1.3% to $965 on Tuesday, giving back some of the morning’s gains. Investors reacted to weaker-than-expected U.S. consumer data and awaited the Federal Reserve’s upcoming decision. The stock fluctuated between $961.73 and $978.60 during the session.
The warehouse retailer remains a favored pick for portfolios seeking steady demand and stability. With traders already on edge over rates, inflation, and jobs data, even minor shifts in a defensive consumer stock stand out.
Costco’s calendar catches the eye of short-term traders. Its monthly sales report often jolts the stock, offering a timely snapshot of demand ahead of the upcoming earnings rush.
U.S. stocks showed a split picture, with the S&P 500 and Nasdaq climbing while the Dow slipped, weighed down by a steep drop in UnitedHealth shares. “The impetus for markets to continue to rise is going to be an earnings story,” said Charlie Ripley, senior investment strategist at Allianz Investment Management, highlighting this week’s heavy schedule of earnings reports. 1
U.S. consumer confidence took a steep dive in January, dropping to its lowest point since 2014 amid concerns over soaring prices and a weak labor market. Dana Peterson, chief economist at the Conference Board, noted that “consumers’ write-in responses on factors affecting the economy continued to skew towards pessimism.” 2
The Fed’s calendar confirms the central bank will meet on January 27-28, leaving rate speculation active throughout the market. 3
For Costco, weaker sentiment has a double-edged effect. It may drive customers to stock up on essentials and bulk goods, yet it can dampen sales in discretionary areas such as electronics, home goods, and pricey seasonal products.
Cost pressure could rise if trade policies tighten once more. Early earnings reports suggest tariffs might remain “manageable,” but margins risk being pinched if consumers resist price hikes. “Most consumers are still mad about the level of current prices and won’t take kindly to further hikes,” warned Brian Jacobsen, chief economic strategist at Annex Wealth Management. 4
Traders are set to monitor shifts in rate expectations post-Fed, as prolonged higher borrowing costs could alter investor appetite for “steady” retail stocks. A slowdown in traffic in upcoming sales data would probably trigger a quick response.
Costco is set to release its January sales figures on February 4 at 1:15 p.m. PT, per its investor events calendar. 5
