The Dow Jones Industrial Average rose 239 points Tuesday, posting gains for the fifth consecutive session. File Photo by John Angelillo/UPI | License Photo
Aug. 16 (UPI) -- The Dow Jones Industrial Average posted gains for the fifth consecutive session Tuesday as strong earnings from major retailers began to come in.
The blue-chip Dow climbed 239.57 points, or 0.71%, while the S&P 500 closed up 0.19%, after falling earlier. The tech-heavy Nasdaq Composite lagged behind, declining 0.19%.
Shares of Walmart rose 5.11% to help lift the market as the retailer posted better-than-expected second-quarter earnings at $1.77 earnings per share, surpassing analysts' average prediction of $1.62. Revenue also came in at $152.86 billion, topping the expectation of $15.81 billion.
The company also revised its full-year guidance for profits to drop 9% to 11% from a prior range of 11% to 13% lower.
Walmart CEO Doug McMillon said Tuesday that the company is "working hard to support [customers] as they prioritize their spending" amid high inflation.
"The actions we've taken to improve inventory levels in the U.S. along with a heavier mix of sales of grocery put pressure on profit margin for Q2 and our outlook for the year," he said.
Home Depot beat expected earnings, as same-store sales in the United States rose 5.8% compared to expectations of a 4.9% increase.
Shares of the company rose 4.07% as the company also reaffirmed its third-quarter outlook and said it expects to see comparative sales grow by 3%.
Other retail names also received a boost behind the strong earnings as Best Buy rose 4.35% and Target gained 3.96%.
Bed, Bath and Beyond shares also surged more than 29%, and have doubled in the last week, while GameStop rose 6.35% amid a resurgence of trading in meme stocks.
Target and Lowe's are to release earnings Wednesday.
"We still have a lot of retail stocks that are going to report," Adam Sarhan, founder and CEO at 50 Park Investments said.
"But by and large, if at the end of the week, we're still up and we're up nicely, and those retailers don't give back those gains they're enjoying today, that's going to be strengthening the bullish case."