As of midday trading on Thursday, the Dow Jones Industrial Average is green to the tune of just over 1%, as Walmart and Cisco both outperformed analyst expectations. Meanwhile, the S&P 500 gained roughly 1.2% while the Nasdaq Composite climbed the most at nearly 1.4%. Both the S&P 500 and Nasdaq are currently positive on the week now.
Walmart shares rose 3.5% after the retail giant posted first-quarter earnings which beat analyst expectations. For the first quarter, Walmart delivered adjusted earnings per share of $1.13, outpacing Wall Street analysts’ expectations of $1.02. Revenue for the quarter came in at $123.9 billion, in contrast to estimates of $124.94 billion. The closely followed comp sales number came in at 3.4%, marking the best first quarter in 9 years, Walmart noted.
“We’re continuing our transformation to become more of a digital enterprise,” Walmart CEO Doug McMillon said Thursday in a statement, according to CNBC.
Sam’s Club, the American chain of membership-only retail warehouse clubs owned and operated by Walmart, also showed a mild uptick in sales as well. But that increased performance was tempered by lower tobacco sales, according to the retailer.
“We are pleased with the progress and members are responding favorably, but there’s more work to do,” CFO Brett Biggs said about Sam’s Club.
Cisco Systems also reported better-than-expected quarterly earnings, sending its stock up 5.4%. The company also issued stronger-than-forecast revenue guidance, according to CNBC.
Late Wednesday, Cisco reported fiscal third-quarter net income of $3.04 billion, or 69 cents a share, compared with a $2.69 billion, or 56 cents a share, in the past year time frame. Adjusted earnings were 78 cents a share.
On top of positive earnings news, in the ongoing trade spat with China, President Donald Trump declared a national emergency over threats against American technology on Wednesday. This move is expected to be followed by a restriction on U.S. firms doing business with Huawei, a Chinese telecommunications company.
“The recent flare-up in U.S./China trade tensions is a near-term negative for equities,” said Salvatore Ruscitti, equity strategist at MRB Partners, in a note. But “assuming the U.S. and China eventually reach a trade deal within the next few months, the weakness in equities should be temporary, and stock prices should move higher on a 6-12 month horizon.”