The Market News Today: Walmart Earnings to Drive Retail Sector Performance

Walmart Earnings Preview: Anticipated Gains and Optimism

Walmart (WMT) is set to release its Q1 earnings before the bell on Thursday. Analysts predict earnings of 53 cents per share, slightly above the consensus of 52 cents and last year’s 49 cents. Revenue is expected to reach $159.4 billion, a 4.7% increase year-over-year. Despite a challenging consumer spending environment, Walmart’s strong momentum could signal continued outperformance in the retail sector.

Stock Futures Rise After Positive Inflation Data

Stock futures rose Thursday following a lighter-than-expected inflation report. Dow Jones futures added 65 points (0.16%), S&P 500 futures increased 0.14%, and Nasdaq 100 futures advanced 0.2%. All three major averages hit record highs in regular trading, with the Dow up 0.88%, S&P 500 gaining 1.17%, and Nasdaq Composite climbing 1.40%. Investors anticipate further economic data and earnings reports, including Walmart, Under Armour, and Baidu.

Cisco Exceeds Q3 Estimates, Shares Surge

Cisco reported fiscal Q3 earnings of 88 cents per share, surpassing expectations of 82 cents. Revenue reached $12.7 billion, above the $12.53 billion estimate. Despite a 13% year-over-year revenue decline and a 41% drop in net income, Cisco’s stock rose 8% in extended trading. The company increased its fiscal 2024 revenue guidance and completed a $28 billion acquisition of Splunk. CEO Chuck Robbins noted progress in overcoming supply chain challenges.

Treasury Yields Recover After Retreating on Soft CPI Report

U.S. Treasury yields recovered early Thursday after retreating on Wednesday following a softer-than-expected CPI report. The consumer price index rose 0.3% from March to April, below the 0.4% forecast. Annually, it increased 3.4%, aligning with expectations. Market participants hope the Federal Reserve will lower borrowing costs soon. Core CPI, excluding food and energy, rose 0.3% monthly and 3.6% annually, both meeting forecasts. Fed Chair Jerome Powell emphasized patience due to persistent inflation.

Gold and Crude Oil Prices Gain on Inflation Data

Gold prices rose 0.2% to $2,391.78 per ounce, supported by a weaker dollar and lower Treasury yields following softer U.S. inflation data, boosting prospects of a Fed rate cut. Conversely, crude oil prices extended gains, with Brent futures at $83.07 a barrel and WTI at $78.94, driven by signs of stronger U.S. demand and declining inventories. Geopolitical tensions and expectations for Fed policy easing also contributed to the bullish sentiment for both commodities.