Corporate earnings continue to prove resilient, with a slew of large companies reporting positive results.
Walmart Inc., for example, increased its full-year sales and profit outlook, indicating that the world’s largest retailer is keeping rising costs under control and luring in price-sensitive shoppers. Walmart’s news helped push its stock up 2.8% and added to the rally in retail and consumer stocks.
On the other hand, Bath & Body Works Inc. suffered a loss as its stock tumbled 24% after cutting its full-year earnings forecast. This reflects the struggles for the retail sector, with the shift in consumer sentiment, especially with inflation continuing to pinch household spending.
Other noteworthy corporate actions: Verizon Communications Inc. announced it will lay off as many as 20% of its non-union employees as part of a larger restructuring.
Shares of Cipher Mining Inc. jumped 13% after the company landed another AI hosting contract and additional funding from Alphabet Inc.’s Google.
While some individual companies have reported setbacks, the broader corporate landscape continues to reflect steady growth, as several companies have raised their outlook for the year ahead. Investors center on better-than-expected earnings that also show a clearer path to growth in subsequent quarters.