During my Week Ahead report on Monday, I said: “I don’t expect Walmart to disappoint Wall Street with respect to its Q1 performance, but its guidance for the current quarter could be muted due to high oil prices.” My concern was that high gasoline prices might discourage spending on other goods, especially for cash strapped consumers living paycheck to paycheck.

This morning, Walmart (NYSE: WMT) released solid Q1 results, including a 4.1 percent increase in US comparable sales on a year-over-year basis. However, the company noted that many of its customers are spending less money at its gas stations while also buying fewer discretionary retail items.

Shortly after that news was announced, Walmart’s share price fell sharply. After closing above $130 yesterday, WMT traded below $121 this morning before leveling off. That put it back to where it was in early February, three weeks before the start of the war in Iran.

MY HOT TAKE: Walmart’s Q1 results were good, but its warning that high gasoline prices are already affecting consumer behavior was all Wall Street needed to hear to dump the stock.