Fundamentals, US Markets

US Equities Rise On Wal-Mart Earnings

Friday, 14 Aug 2009 12:06 EDT at 0:06 by CFDTrading Analyst · Leave a Comment 

US Session Key Developments

  • Wal-Mart Stores Inc. Reports Better-Then-Expected Profits
  • Retail Sales Continue To Slump

US Markets rose for the second consecutive day after Wal-Mart Stores Inc. exceeded analyst expectations for the second quarter.  Wal-Mart, seen as a bellwether to the retail industry, and overall economy posted strong results as consumers made the shift to thrift and bought the chain store’s cheaper goods.  Wal-Mart Stores’ earnings report overshadowed an unexpected fall in Retail Sales.  Retail Sales fell -0.1% in July failing to meet expectations of a 0.8% rise.  The Paulson hedge fund helped lift markets as it sought to buy up banks, strengthening confidence in the ailing sector.

DOW 30   9398.19               +36.58                   +0.39%

Bank of America rose 6.7% as hedge-fund manager John Paulson bought 167 million shares.  The move was seen as a vote of confidence in the bank’s future.

SPX 500   1012.73              +10.63                   +0.53%

Financials, Technology, and Energy companies were the big gainers as relatively safer industries like health care and consumer products fell.  VIX Index ebbed slightly lower to 24.71.

NAS 100   2009.35              +10.63                   +0.53%

The NASDAQ rose with the rest of US indexes as speculation lifted all indexes.

Written by Kevin Yip, CFDTrading Analyst

For questions and comments email kyip@fxcm.com

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