Stock Market Today Mid Morning Updates
On Tuesday morning, the Dow Jones Industrial Average reversed to the upside by over 63 points. This comes following four straight weeks of S&P gains, along with better-than-expected earnings from top retail companies such as Walmart (NYSE: WMT) and Home Depot (NYSE: HD).
Last week, the S&P 500 advanced 3.25% to post its fourth straight week of gains, making it the longest winning streak since 2021. Meanwhile, the Nasdaq composite recovered another 3.08% last week, while the Dow recorded gains of 2.9%. Additionally, this week investors will be closing attention to corporate earnings from other top retail companies. Specifically, retail companies such as Target (NYSE: TGT), Lowe’s Companies, Inc. (NYSE: LOW), and TJX Companies Inc. (NYSE: TJX) will report their most recent quarterly earnings results before the market opens on Wednesday.
Amid the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are trading down by 0.64% on Tuesday morning, while Microsoft (NASDAQ: MSFT) is also in the red by 0.99%. Meanwhile, shares of Caterpillar, Inc. (NYSE: CAT), and The Walt Disney Co (NYSE: DIS) shares are trading lower on Tuesday morning. Among the Dow financial leaders, shares of American Express Co. (NYSE: AXP) and JPMorgan Chase & Co. (NYSE: JPM) are trading mixed during Tuesday morning’s trading session.
Shares of EV leader Tesla (NASDAQ: TSLA) fell on Tuesday by 1.74%. Rival EV companies like Rivian are also trading lower by 2.55%. Lucid Group (NASDAQ: LCID) stock dropped by 2.59% on Tuesday morning. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Inc. (NYSE: XPEV) are trading down on Tuesday.
Dow Jones Today: U.S. Treasury Yield Jumps To 2.85%
Following the stock market opening on Tuesday, the major indices opened mixed. The Dow is trading higher by 0.09%, while the S&P 500, and Nasdaq are trading lower by 0.39%, and 1.03%, respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) fell on Tuesday morning by 1.08% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also trading lower by 0.41%.
The benchmark 10-year U.S. Treasury yield is at 2.85% during the Monday morning trading session. Additionally, investors will be paying close attention to key economic data that will be released on Wednesday. Specifically, the Fed minutes from the central bank’s latest policy meeting and U.S. retail sales are both scheduled to be released on Wednesday this week.
Walmart Stock Jumps On Quarterly Earnings & Revenue Beat
Shares of the retail giant Walmart rallied over 5% on Tuesday to $139.95 per share. This comes after the company reported stronger-than-expected second-quarter 2022 earnings results. In the report, Walmart posted a beat on earnings per share of $1.77 versus the estimates of $1.60 per share. Also, the company also beat analysts’ revenue estimates, recording $152.9 billion in Q2, versus the $150.5 billion consensus estimates. Additionally, Walmart’s U.S. comp sales advanced 6.5%, while e-commerce growth was 12%.
The company said it expects third-quarter earnings of $1.29 to $1.32 per share on revenue of approximately $147.55 billion. The current consensus earnings estimate is $1.30 per share on revenue of $145.68 billion for Q3. Doug McMillon, President & CEO at Walmart commented in his letter to shareholders, “We’re pleased to see more customers choosing Walmart during this inflationary period, and we’re working hard to support them as they prioritize their spending. The actions we’ve taken to improve inventory levels in the U.S., along with a heavier mix of sales in grocery put pressure on profit margin for Q2 and our outlook for the year.“
Home Depot Stock Jumps After Reporting An Earnings Beat
On Tuesday morning, Home Depot reported a beat for its second quarter 2022 fiscal results. As a result, shares of HD stock gained over 3% off the open on Tuesday at $324.62 a share. In detail, the retail behemoth reported earnings per share of $5.05 on revenue of $43.8 billion. For context, wall street estimates for the quarter were earnings of $4.95 per share on revenue of $43.4 billion. Additionally, Home Depot posted a 6.5% increase in revenue on a year-over-year basis.
What’s more, in the report, Home Depot reaffirmed its fiscal 2022 guidance. Specifically, they continue to expect fiscal 2023 earnings of approximately $16.31 per share on revenue of approximately $155.69 billion. In comparison, the current consensus earnings estimate is $16.42 per share on revenue of $156.24 billion for the year. “In the second quarter, we delivered the highest quarterly sales and earnings in our company’s history,” said Ted Decker, CEO and president. “Our performance reflects continued strength in demand for home improvement projects. Our team has done a fantastic job serving our customers, while continuing to navigate a challenging and dynamic environment.“