NEWS
U.S. Consumers Save The Day

The Nasdaq 100 is up 12% over the last nine sessions, so it’s safe to say the market has found its groove again. Better-than-expected data about the U.S. consumer added more pep to the bulls’ step. Let’s see what else you missed. 👀

Today's issue covers strong retail sales and Walmart earnings, price and sentiment diverging in two popular stocks, and why Alibaba earnings were $BABA-boring📰

Here’s the S&P 500 heatmap. 9 of 11 sectors closed green, with consumer discretionary (+3.19%) leading and real estate (-0.29%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $FIHL, $BSLK, $ARAY, $AMAT, $COHR 📉 $HRB, $FOUR, $ASTS, $SEDG, $AFRM*

*If you’re a business and want to access this data via our API, email us.

ECONOMY
Retail Sales & Walmart Results Tip The Scales 🛒

With two-thirds of U.S. GDP attributed to consumer spending, it makes sense that the market cares so much about households' financial health, especially as it assesses whether the Fed’s “soft landing” is still in play. 🤔

Luckily for investors, July retail sales jumped 1% compared to the 0.30% estimate, led by strength in automobiles, electronics/appliances, and food and beverage outlets.

Additionally, initial jobless claims hit a five-week low and helped ease some concerns that the labor market could be headed for a major uptick in unemployment. 💼

We also heard from Walmart, the largest U.S. retailer and a barometer for consumption trends. A stronger-than-expected first half caused management to raise its full-year revenue and earnings outlook, but still, it cautioned that the second half of the year would likely be slower. ⚠️

CFO John David Rainey said, “We see, among our members and customers, that they remain choiceful, discerning, value-seeking, focusing on things like essentials rather than discretionary items, but importantly, we don’t see any additional fraying of consumer health…”

However, pockets of strength are worth noting, such as positive sales growth in general merchandise for the first time in eleven quarters. The company’s focus on groceries remains another strong point, as customers look for cheaper alternatives to fast food.

Lastly, Walmart’s e-commerce push continues to pay off, with sales jumping 22% YoY in the U.S. and 21% globally. Total in-store and online transactions rose 3.60% YoY, and the average ticket rose 0.60% YoY. 🛍️

Walmart shares gapped up 7% and maintained those levels, closing at a new all-time high amid ‘extremely bullish’ sentiment readings on Stocktwits.

Overall, the positive data was great for Walmart and the broader market. It helped give bulls the confidence to continue their recent buying spree and to set their sights on new all-time highs. 👀

SPONSORED
The Next AI Disruptor is Open for Investment

Meet the high-growth AI startup with backers including Adobe and execs from Google, Meta, Amazon, and Snap. It’s developed groundbreaking artificial intelligence that helps brands identify new audiences and boost content ROI, servicing Fortune 500s and delivering as much as 3.50X ROI.

Round closes on 8/16. Open to accredited investors only.

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.