The stock market is once again the meme market.
The major averages ended mixed on Tuesday, with the Dow up 0.7% after Walmart’s ( WMT ) better-than-expected earnings report, the S&P 500 down 0.2% and the Nasdaq down 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.
At the closing bell, shares of Bath & Beyond ( BBBY ) , which were 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.
Shares of GameStop ( GME ) also rose, rising more than 6%. On Tuesday morning, GameStop shares were also halted on volatility.
As Steve Sosnick of Interactive Brokers told Yahoo Finance Live on Monday, the revival of this meme trade comes as investors seem eager to lean on the playbook for late 2020 and early 2021 as this summer concentration 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.
Elsewhere, the big story early Tuesday was a quarterly earnings report from Walmart ( WMT ) that came in better than feared, kicking off what will be a busy week for the retail sector.
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 lower its full-year profit forecast and report the negative impact inflation was having on its 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%.
The story continues
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 that beat general expectations.
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 with WTI crude oil closing at its lowest since Jan. 25 at $86.53 a 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.
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