Stocks rebounded from yesterday’s selloff as the Dow gained 56 points to close at 20,663 on heavy volume. The political turmoil subsided a bit as earnings reports continue to hit the news wires.
Walmart reported Q1 numbers today and the results were good. The Bentonville, AR retail giant posted a 1% revenue gain and a 2% profit increase which beat estimates. What surprised the gurus within the report was an acceleration in the growth rate of online sales which came in at a 63% increase. The bulk of this was organic growth at Walmart.com. Going forward Walmart issued guidance that is just below consensus views. Shares were higher on the news.
Computer network equipment biggie Cisco reported earnings that also beat estimates. The company posted a 1% revenue drop and a 5% net income increase. The revenue drop was due to weak public sector orders meaning that uncle sugar was not buying equipment. Cisco expects this public sector weakness to continue thanks to “lack of budget visibility” and as a result lowered its forward guidance by projecting a revenue fall of 4% to 6% year over year. This tidbit of news caused investors to bolt sending shares lower.