The stock market is once again the meme market.
On Tuesday, the major averages ended mixed, with the Dow down 0.7% after Walmart (WMT) better than feared, the S&P 500 rose 0.2% and the Nasdaq fell 0.2%.
At the index level, recovery from mid-June lows remains the dominant theme.
Beneath the surface, however, the resurgence of the meme trade served as the biggest story of the day.
As the closing bell rang, shares of Bath & Beyond (BBBY), which halted at least twice on volatility during the day, closed up 29%. Shares of Bed, Bath & Beyond have more than doubled in the past week and are up more than 400% since the end of July.
GameStop (GME) also gained shares, which rose more than 6%. On Tuesday morning, GameStop shares were also halted on volatility.
As Steve Sosnick of Interactive Brokers he said on Yahoo Finance Live on Mondaythe revival of this meme trade comes as investors seem eager to lean on the late 2020/early 2021 playbook as this summer rally continues.
“It was a spectacular playbook for that time period,” Sosnick said. “But the rules of the game seem to be changing.” Although maybe not on Tuesday.
Walmart reported quarterly earnings and revenue that beat expectations, with adjusted earnings per share coming in at $1.77 on revenue of $152.9 billion. The company’s same-store sales in the United States rose 6.5% in the quarter.
Shares of the retail giant gained just under 5% on Tuesday.
These results follow a late July warning from the company that saw Walmart cut its full-year profit forecast and call out the negative impact of inflation on their customers. Walmart stock has now recovered all of the losses it suffered after that warning.
In this release, Walmart said it expected full-year adjusted operating profit to fall between 11% and 13%. On Tuesday, the company raised those expected losses, saying it now sees full-year profits falling between 9% and 11%.
Walmart CEO Doug McMillon said Tuesday that the company is “working hard to support [customers] as they prioritize their spending” in this inflationary environment. outlook for the year.” McMillon added.
Cars are seen parked in a Walmart Supercenter. (Photo by Paul Weaver/SOPA Images/LightRocket via Getty Images)
Elsewhere in the markets on Tuesday, Home Depot reported second quarter results which exceeded expectations in every way.
Home Depot reported same-store sales in the US rose 5.8% against expectations for a 4.9% increase. The company also reaffirmed its forecast for the third quarter, saying it expects comp sales to grow 3%. Shares of Home Depot gained 4% on Tuesday.
On the economic front, housing market data released Tuesday morning showed another slowdown in the sector, with housing starts falling more than expected in July. Home starts fell 9.2% in July, more than the 2.1% expected by economists.
The number of building permits issued last month fell by 1.3% compared to the previous month.
Energy markets also remained focused WTI crude oil close to its lowest level since January 25, and stood at $86.53 per barrel.
Monday, however, saw a 61-day streak of lower national gas prices, with the national average rising a penny amid higher prices in the Great Lakes region. according to Gas Buddy’s Patrick De Haan.