(Thursday Market Open) After Wednesday’s plunge, investors needed a little something to lift their spirits. They received two care packages early Thursday, one from China and the other from Wal-Mart.
Solid earnings from the world’s biggest retailer and word that a Chinese delegation is set to visit Washington later this month to talk trade might help fade the Turkey-related fears that sank the market earlier in the week. Stocks rose sharply in pre-market trading as good earnings seem to be overshadowing the Turkish situation at least for the moment.
WMT easily beat Wall Street analysts’ earnings estimates and reported a 40% rise in online sales during the most recent quarter. The huge retailer’s results might be another indication of a healthy U.S. consumer, and shares leaped more than 10% before the opening bell.
WMT earned $1.29 a share in Q2, beating estimates by 8 cents, and revenue of $128.03 billion also topped forecasts. U.S. same-store sales rose 4.5%, above forecasts for 2.3%. The company also looked very impressive in raising earnings guidance for the full fiscal year to between $4.90 and $5.05, from previous g
As earnings season winds down, focus shifts to economic and trade tensions in Turkey and the Pacific Rim.
This morning, U.S. stocks appeared poised for gains, based on equities futures trading before the opening bell, as the Turkish currency gained some footing.
The new week could have a dual focus as investors closely monitor events abroad even as they watch retail earnings start rolling in at home.
The markets seem cautious Friday amid geopolitical concerns. A 13% decline in the Turkish lira this week and continued trade turbulence with China both appear to weigh on stocks.
The failed mergers might be one point of focus Thursday, and investors could also be watching inflation data.
A focus this morning appears to be $16 billion in Chinese goods that will be subject to a 25% U.S. tariff starting later this month.
This morning, investors appear to be focusing on momentum from a generally solid earnings season and letting trade talk simmer on the backburner.
The coming week might seem quieter after all the data and the Fed meeting of the previous week. But there’s still key inflation data on tap and some important earnings.
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