Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


While you were sleeping: Wal-Mart, Cisco rallies boosts mood

While you were sleeping: Wal-Mart, Cisco rallies boosts mood

By Margreet Dietz

Nov. 17 (BusinessDesk) - Wall Street gained as shares of Wal-Mart and those of Cisco rallied after posting earnings that beat expectations.

Also adding to sentiment was renewed optimism that the Trump administration is making progress on its tax reform including corporate tax reductions.

In 12.51pm trading in New York, the Dow Jones Industrial Average climbed 0.8 percent, while the Nasdaq Composite Index rallied 1.4 percent. In 12.36pm trading, the Standard & Poor’s 500 Index advanced 0.9 percent.

“The bull market is still intact. Good earnings and strong economic data are what stocks care about,” Michael Antonelli, managing director, institutional sales trading at Robert W Baird in Milwaukee, told Reuters.

US Treasuries declined, sending yields on the 10-year note three basis points higher to 2.35 percent.

“It looks like (tax reform) will get done, but I think people get more emotional about it than they should,” Joe ‘JJ’ Kinahan, chief market strategist at TD Ameritrade, told Bloomberg. “At the end of the day, earnings drive the market, earnings have overall been good.”

The Dow gained as rallies in shares of Wal-Mart and those of Cisco, recently up 9 percent and 6.2 percent respectively, outweighed declines in shares of Travelers and those of Exxon Mobil, recently down 1.8 percent and 1.1 percent respectively.

Shares of Chevron also declined, following oil prices lower, and traded 0.6 percent weaker recently for the third-largest percentage fall in the Dow.

Shares of Wal-Mart Stores jumped to a record high after the world’s largest retailer reported better-than-expected quarterly sales growth and upgraded its full-year earnings forecast, bolstering optimism about its outlook in an increasingly competitive industry pressured by Amazon.

US comparable sales rose 2.7 percent in the quarter from the same period a year earlier, while comparable traffic grew 1.5 percent, Wal-Mart said in a statement. Online net sales in the US climbed 50 percent in the quarter from the same period a year ago.

“While we recognise that there are some incremental hurricane-related sales in these numbers, our core business is performing well,” Doug McMillon, Wal-Mart Stores CEO, said according to a transcript of the company's earnings call.

"The food business, in particular, has accelerated and delivered the strongest quarterly comp sales performance in almost six years with our fresh meat, bakery and produce teams leading the way,” according to McMillon.

The company upgraded its projection for its fiscal-year 2018 adjusted earnings to between US$4.38 a share and US$$4.46 a share, up from its previous forecast for between US$4.30 a share and US$4.40 a share.

“We have momentum, and it's encouraging to see customers responding to our store and eCommerce initiatives,” said McMillon.

In Europe, the Stoxx 600 Index ended the session with a 0.8 percent advance from the previous close. It was the first gain for the index in more than a week, according to Bloomberg.

The UK’s FTSE 100 Index added 0.2 percent, Germany’s DAX Index rose 0.6 percent, while France’s CAC 40 Index increased 0.7 percent.



© Scoop Media

Business Headlines | Sci-Tech Headlines


Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>