The large American retailer Walmart gained 5.8 percent on the stock exchanges in New York on Tuesday. The supermarket group raised its full-year outlook thanks to strong results in the past quarter.
The group was also able to further reduce its high inventories compared to the previous two quarters. Due to the high inflation, Walmart also managed to attract more consumers from higher income groups to its stores with offers. The company will buy back $ 20 billion of its shares to reward shareholders.
Investors also processed new data on producer prices. The prices charged by American manufacturers for their goods rose by 0.2 percent every month in October, which is less strong than expected. In addition, last week, consumer prices in the United States had cooled more than expected in the past month. That better-than-expected inflation figure caused a significant recovery rally on Wall Street because it allowed the US central bank to slow down in raising interest rates.
Shortly after the start of trading, the Dow Jones index was 1.2 percent higher at 33,943 points. The broad S&P 500 gained 1.7 percent to 4,024 points, and the tech gauge Nasdaq climbed 2.5 percent to 11,474 points.
Home Depot advanced 1.5 percent. The DIY group posted more turnover than expected last quarter despite rising costs and deteriorating market conditions. The company maintained full-year guidance ahead of the primary holiday season. Other retailers such as Target, Lowe’s, Macy’s and Kohl’s, which will report results later this week, gained up to 4.4 percent.
Netflix rose 3.6 percent. Analysts from Bank of America raised their rating for the video streaming service from sell to buy.
Tencent Music gained 17 percent. The Chinese music streaming service saw the number of paying customers to increase further and posted more profit than expected last quarter. On the other hand, the provider of photo and video material, Getty Images, plummeted 12 percent after disappointing results.
Estée Lauder became almost 3 percent more expensive. The cosmetics company is close to a deal to acquire fashion brand Tom Ford for around $2.8 billion, the business newspaper The Wall Street Journal reported. It would be the largest acquisition ever for the company.