Despite positive walmart earnings report the dow falls

Dow Jones down despite positive Walmart earnings

The Dow Jones was lower on Tuesday, despite data showing that one of the largest grocery chains in the U.S. had posted better than expected Q1 earnings.

Walmart, which held its earnings call earlier today saw its share price rise in today’s session as a result of the upbeat earnings.

The company reported that online sales rose by 37%, whilst its earnings per share came in at $1.69 vs. $1.21 expected.

In addition to this, it was reported that revenue rose to $138.31 billion for the quarter, vs expectations of $131.97 billion.

$WMT was up 2.17%, whilst the Dow was trading 0.78% lower.

Gold prices rise to 4-month high

Today’s trading session saw sold prices rise to their highest level in 4-months as the Dollar continued to weaken against G-7 currencies.

XAUUSD has climbed by over $100 in May so far, as economic data from the United States showed that growth had somewhat slowed.

In the last 2-weeks both Non-farm payrolls, and retail sales fell short of expectations, whilst the countries inflation rate continued to rise.

Many have since called on the Federal Reserve to move and adjust rates, however Powell has maintained that the Fed will continue to monitor inflation up until it reaches the 2% target.

As of writing, XAUUSD had hit an intraday high of $1,875, however has since fallen to $1,867.

Colonial Pipeline Hackers have “Earned” $90 million in Bitcoin

On Tuesday, Elliptic a London-based blockchain analytics firm, announced that it had verified that the DarkSide hackers had received $90m in BTC from 47 total victims. 

The Colonial Pipeline payment of $5m appears to be one of the largest earned before the hackers closed down after losing access to its servers and some crypto wallets. 

DarkSide also appears to be dealing with “pressure from the U.S.” after its most recent attack led to outages and gas line-ups on a scale not seen since the oil embargo and energy crisis of the 1970s.

Oil hits highest point since March

Gold was not the only commodity to rise to a multi week high on Tuesday, oil prices also rose, hitting their highest level since March.

As lockdown restrictions in Europe and the United States continue to ease, demand for oil has gradually begun to increase.

The Energy Information Administration has recently stated that it believes demand for energies may outpace supply, which may push OPEC+ to consider ramping up production.

WTI crude rallied to an intraday high of $67.01, however failed to break past this resistance and has since dropped $2, and as of writing is trading around the $65.28 level.

Quote of the day – “In investing, what is comfortable is rarely profitable.”

– Robert Arnott

Eliman Dambell

Senior Market Analyst
edambell@tvmarkets.com