51.1 F
Fort Worth
Saturday, November 28, 2020
Banking Wal-Mart, Macy's rally after fears about holiday season subside

Wal-Mart, Macy’s rally after fears about holiday season subside

Other News

Exxon’s oil slick

Exxon Mobil is slashing its capital spending budget for 2020 by 30% due to weak demand caused by the COVID-19 pandemic and a market...

Folk music’s Mark Twain: 7 Essential tracks from John Prine,

NEW YORK (AP) — Some people, the songs just come out of them. For nearly half a century, they tumbled out of John Prine...

Tarrant County records another COVID-19 death

Tarrant County Public Health (TCPH) on Wednesday, April 8 reported that a resident of Euless has died as the result of the COVID-19 virus....

Tradition stymied: A year unlike any since WWII for Augusta

The Masters is so intertwined with Augusta, they added an extra day to spring break.You see, the first full week of April isn't just...

Shares of Wal-Mart, Macy’s and other retailers rallied on Tuesday after results from the crucial Christmas season exceeded Wall Street’s pessimistic expectations.

Wal-Mart delivered fourth-quarter results with good news on two fronts: online and brick-and-mortar sales. The world’s largest retailer is seeing its best U.S. growth in more than four years on a same-store basis, and it appears to be finally challenging Amazon.com in e-commerce. Macy’s also posted rosier earnings than expected.

The news soothed investors after months of fretting about the holiday season. Alarms about U.S. retailers only grew louder in January, when department-store chains released preliminary sales data that painted a dim picture, sending stocks tumbling.

“A lot of retailers are missing their numbers, so expectations were pretty low,” said Brian Yarbrough, an analyst at Edward Jones. The Wal-Mart results were especially impressive against that backdrop, he said.

Home Depot also topped analysts’ estimates for the latest quarter, though it was helped more by America’s home-renovation frenzy than holiday spending. Sales at stores open for more than a year – a key benchmark for investors – rose 5.8 percent. That beat the 3.5 percent prediction, according to Consensus Metrix.

Wal-Mart’s stock climbed as much as 4.2 percent to $72.28, marking its biggest intraday gain since May. Shares of Macy’s rose 3.7 percent, while Home Depot advanced 1.9 percent. Other retailers, such as Gap, also gained.

Investors have been bracing for a tough earnings season. Overall, retailers are expected to post same-store sales growth of 0.3 percent for the fourth quarter, according to Retail Metrics. That would be the weakest performance since 2013.

The department-store industry has been especially hard hit. Macy’s, Kohl’s and J.C. Penney all reported weak preliminary holiday results last month. Macy’s also pushed ahead with a plan to cut 100 underperforming stores and about 10,000 jobs.

A company such as Macy’s still faces long odds, Oliver Chen, an analyst at Cowen & Co., said in a report. Discount chains and Amazon pose a formidable threat, and sluggish mall traffic is weighing on sales.

With all those challenges, the earnings were “encouraging,” he said. “Don’t ignore Macy’s.”

At Home Depot, the chain is planning to open three U.S. stores this year after not opening any from 2014 to 2016.

“Our business was stronger than anticipated in the fourth quarter,” Chief Financial Officer Carol Tome said. “As we look to 2017, we’re guiding very strong sales growth. Housing is going to be a big contributor.”

– – –

With assistance from Molly Smith


Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.

Latest News

Stocks edge higher on Wall Street on latest vaccine hopes

NEW YORK (AP) — U.S. stocks edged higher in morning trading Monday after investors received several pieces of encouraging news on COVID-19 vaccines and...

Mnuchin denies he’s trying to hinder incoming administration

WASHINGTON (AP) — Treasury Secretary Steven Mnuchin denied that he is attempting to limit the choices President-elect Joe Biden will have to promote an...

Bank of America announces $2.65 million jobs initiative for Texas Black and Hispanic-Latino students

Bank of America announced a new multimillion dollar jobs initiative Nov. 19 to help students of color complete the education and training necessary to...

PNC to buy US unit of Spain’s BBVA bank for $11.6 billion

NEW YORK (AP) — PNC Financial Services Group said Monday it is buying the U.S. subsidiary of Spain's BBVA bank for $11.6 billion in...

Banker gets 1-year term for coronavirus relief funds fraud

By MATTHEW BARAKAT Associated PressALEXANDRIA, Va. (AP) — A northern Virginia banker who admitted illegally receiving $1.4 million in fraudulently obtained coronavirus relief funds...