Early Thursday, the Dow Jones Industrial Average surged to all-time highs, surpassing the significant milestone of 40,000 for the first time. This widely-watched index, which tracks leading blue-chip stocks, has experienced a 6% increase since the start of 2024.
The record-breaking day was largely driven by Walmart's impressive performance, with the retail giant's stock surging over 6% in early trading following a better-than-expected earnings report. Analysts had initially anticipated Walmart's earnings to reach 53 cents per share, with a 5% year-over-year revenue growth to $159.51 billion. However, Walmart exceeded these projections, reporting adjusted earnings of 60 cents per share and revenue rising by 6% to $161.51 billion.
A significant factor contributing to Walmart's success was its robust e-commerce sales, which saw a large 21% year-over-year surge. Additionally, the company provided an optimistic outlook for future earnings. Aparna Narayanan, Investors Business Daily author, wrote, “The big-box retailer now expects to hit the top end or to slightly top its prior full-year EPS and revenue guidance. It expects EPS of $2.23-$2.37 for the year and net sales growth of 3%-4%.” With the positive outlook for future earnings and sales growth, investors flooded into the stock, hoping to capitalize on this profitable opportunity.
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