The Markets Today: Walmart’s Quarterly Revenue Up 6% Amid Holiday Shopping

Walmart’s Quarterly Revenue Climbs 6%, Announces Vizio Acquisition

Walmart reports a 6% increase in quarterly revenue, buoyed by holiday season shopping and double-digit growth in global e-commerce sales. Additionally, the retail giant reveals plans to acquire smart TV maker Vizio for $2.3 billion to bolster its advertising business. Despite a decline in net income, Walmart exceeds Wall Street expectations for earnings and revenue. The company anticipates continued sales strength and forecasts growth in consolidated net sales for both the fiscal first quarter and fiscal 2025.

Capital One to Acquire Discover in $35.3 Billion Deal

Capital One Financial is poised to acquire Discover Financial Services in a $35.3 billion all-stock transaction, offering Discover shareholders a 26% premium from Friday’s closing price. Expected to finalize in late 2024 or early 2025, the merger would result in Capital One shareholders holding 60% and Discover shareholders owning 40% of the combined entity, expanding Capital One’s credit card offerings and deposit base. The deal, among the largest in 2024, is anticipated to reshape the financial sector’s merger landscape.

Home Depot Quarterly Sales Dip, Beats Earnings Expectations

Home improvement giant Home Depot reported a nearly 3% decline in quarterly sales year over year, yet exceeded Wall Street’s earnings and revenue projections despite subdued demand. Anticipating a modest 1% growth in fiscal 2024 with plans to open approximately a dozen new stores, the retailer cited a return to normal demand conditions, following decreased consumer spending patterns and challenges from fluctuating lumber prices and rising interest rates. Shares fell over 3% in premarket trading.

Nvidia Surpasses Tesla as Top Traded Stock on Wall Street

Chip giant Nvidia has overtaken Tesla as the most traded stock on Wall Street, solidifying its status as a leading player in AI investments. However, the company’s dominance in trading raises concerns that a revenue growth shortfall could dampen market enthusiasm fueled by AI optimism. Nvidia’s upcoming quarterly report is highly anticipated, with analysts warning that anything less than stellar results could reverse the stock’s 47% surge in 2024.

China’s Lenders Slash Five-Year Loan Rate to Revive Property Market

China’s central bank initiated the first reduction in the country’s benchmark five-year loan prime rate since June, aiming to stimulate the sluggish property market. While maintaining the one-year loan prime rate, the central bank cut the five-year rate by 25 basis points to 3.95%. The move, larger than anticipated, reflects authorities’ targeted easing strategy to bolster the property sector, amidst concerns that incremental policy adjustments have had minimal impact.