LIVE
By Alice Wright For Dailymail.Com
Published: | Updated:
39 shares
58 View commentsAdvertisem*nt
Walmarttoday boosted hopes that the US will avoid a recession - saying it expected bumper sales for the rest of the year after a strong second quarter.
It was a surprising - and welcome - update after Home Depot gave a more grim outlook earlier this week.
It also comes after worrying jobs data in recent weeks sent thestock market crashing.
Walmart, often seen as a bellwether for the overall economy, accounting for $1 in every $12 spent in the US shops, said its US sales rose 4.2 percent in the three months ending in June.
The figures were above what analysts had expected, sending the stock up more than 6 percent in early trading.
US stocks close positive after robust economic data
The S&P 500 closed 1.6 percent higher, regaining all of the index's losses this month.
The tech-heavy Nasdaq leapt 2 percent after signs the US economy will avoid recession.
13:41
Walmart’s strong second quarter leads to raised expectations for rest of the year
Walmart's second quarter saw strong profit and sales, CEO Doug McMillon told analysts on Thursday's earnings call.
The chain was ‘not seeing a weaker consumer overall,’ McMillon said.
Walmart shares rose more than 6 percent in early trading on the news.
The stock is up more than 30 percent year to date.
18:53
Stocks continue to climb on economy optimism
The S&P 500 climbed more than 1.5 percent by Thursday afternoon after retail sales beat expectations.
The Nasdaq leapt around 2.3 percent as economic data, including reduced jobless figures and an improved outlook from Walmart, dispelled fears of the US tipping into recession.
Analysts are now hopeful the Fed will begin to cut interest rates in September.
Home Depot’s grim warning on the economy appears to have been allayed
Home Depot yesterday warned that consumers were feeling the squeeze of higher interest rates and had pulled back on home improvement spending as a result.
The hardware giant’s sales slumped 3.6 percent in the last quarter, raising concerns the US economy was heading for recession.
However, today’s Walmart and jobless figures suggest otherwise, with analysts pointing to a much rosier picture with possible rate cuts on the horizon.
15:39
Data shows its appropriate for Fed to cut rates soon, analyst says
'We’re back to an environment where good news is good news and bad news is bad news,' Bret Kenwell from eToro said of the latest data.
'Investors and consumers want inflation to go lower, but not at the expense of the economy. Today’s stronger-than-expected retail sales figure quiets some of the recent fears that the US may be slipping into a recession.'
'After a weak payrolls report, there were worries that the Fed waited too long to cut rates,' he added.
'While it would still be appropriate for the Fed to lower rates next month, today’s reports should buy them some time until the September meeting.'
14:31
Stocks rise in first hour of trading after doom and gloom appears to dissipate
It's been a rocky few weeks for markets but today’s economic data appears to have added some cheer.
The S&P 500 rose 1.1 percent and the Nasdaq rose 1.8 percent in early trading on the back of positive sales and falling jobless data.
Jobless claims have fallen to their lowest level since early July.
13:42
US retail sales beat forecasts, showing stronger than expected consumer
US retail sales rose 1 percent in July, the most since January 2023.
The data suggests fears of a weaker consumer have been overblown, a positive marker for the overall economy.
The value of retail purchases increased 1 percent, and sales minus autos and gasoline were up 0.4 percent, according to the Commerce Department.
Car sales, electronics and appliances made strong gains.
TOP STORIES
- Nike rival that boomed during the pandemic shuts 14 stores
- Biggest shakeup to buying and selling a home in a century starts today
- McDonald's brings back fan-favorite 'collector's meal' with nostalgic twist for 90s kids
- The ways to shop at Costco WITHOUT a membership as retailer cracks down
- America's biggest grocery chain investigated over Uber-style surge pricing
- IRS still uses tech from JFK era, claims whistleblower revealing the four shameful ways the agency wastes taxpayer money
- Buzzing Midwest city has just been named the most affordable in the US - experts explain why it is so cheap
- Nationwide fashion chain with 500 stores sparks fury after it is accused of cutting plus-size section in stores
- Subway calls 'emergency meeting' as sales plummet - but everyone thinks they know why
- Woman arrested for breaking Applebee's 'all you can eat' meal rules
- Panic as Rite Aid abruptly shuts ALL stores in two states - with customers scrambling to find a new pharmacy
- Urgent recall of 700,000 Trader Joe's products over fears they could set your house on fire
- Quiet Wisconsin city ranked the most desirable housing market for the first time - thanks to budget prices and peaceful surroundings
- Urgent recall of popular candy sold at Walmart and Dollar Tree that could cause death
- Startling rise in rent prices in major cities across the US as Americans struggle to keep up
- KFC revamps its $5 meal deal as it battles McDonald's and Wendy's - but there's a catch
- Number of US homes worth $1 million or more has hit an all-time high - but the trend is reversing in three 'boomtowns'
- Home improvement chain with hundreds of stores across the US files for bankruptcy - and shuts 94 stores
- Rite Aid shuts hundreds more stores - making withdrawal from Midwestern states almost complete
- Starbucks makes drastic change amid sales slump
- Lyft is finally fixing the worst part of calling a car - heaping more pressure on Uber
- Cadillac recalls almost every flagship Lyriq EV it has ever produced over terrifying braking issue
- Urgent warning to Ford and Mazda owners over horrifying defect that's already killed 27 Americans
Walmart
