Stock exchange news from February 22, 2017

U.S. stocks rose to new record highs on Tuesday on upbeat earnings reports from Wal-Mart and Home Depot. US stocks were also able to start the week on a positive note after the Trump administration announced a key name. The Dow posted its eighth straight close to record highs, its longest streak since July 20, 2016, and the day’s gains were wide-ranging as all 11 sectors of the S&P 500 ended the session in the green.

For a look at the issues facing markets today, read today’s “Before Wall Street” article.

The Dow Jones Industrial Average (DJI) rose 0.6% to close at 20,743. The S&P 500 also gained 0.6%, closing at 2,365.38. The tech-heavy Nasdaq Composite Index closed at 5,865.95, up 0.5%. The feared CBOE Volatility Index (VIX) rose 0.5% to 11.55. A total of about 6.7 billion shares were traded on Tuesday, below the 6.8 billion average over the last 20 sessions. Separately, the Dow and S&P 500 have recorded 10 record closes this year, while the Nasdaq has hit 19.

Strong company profits

Wal-Mart Stores, Inc. (WMT) reported fourth-quarter earnings of $1.30 per share, beating the Zacks Consensus Estimate of $1.29 per share. The company’s revenues of $130.9 billion slightly beat the Zacks Consensus Estimate of $130.6 billion.

The international retailer posted positive results at Wal-Mart US after delivering negative results since the third quarter of fiscal 2013. Moreover, traffic improved for the eighth consecutive quarter thanks to the company’s efforts to modernize stores to increase footfall and improve consumer spending. Wal-Mart’s U.S. sales increased 1.8% in the fourth quarter, driven by 1.4% traffic growth and 0.4% ticket growth. Shares of Wal-Mart stores rose 3%. You can see see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Home Depot Inc. (HD) also reported better-than-expected financial results for the fourth quarter of fiscal 2016, continuing its four-year trend of beating earnings estimates. The company reported fiscal fourth-quarter earnings of $1.44 per share, up 23.1% from $1.17 in the year-ago quarter and surpassing the Zacks Consensus Estimate of $1.33.

Net sales increased 5.8% to $22,207 million from $20,980 million in the year-ago quarter. However, the top line was below the Zacks Consensus Estimate of $21,806 million. Nevertheless, the company’s overall results increased by 5.8%, while in the US they increased by 6.3%. The increase in sales can be attributed to a 2.9% increase in both customer transactions and average ticket volume. Moreover, a 5.7% increase in sales per square meter helped the results (read more: Home Depot results at the highest level in Q4, Capital strategy update).

Trump’s brilliant choice

President Donald Trump’s appointment of Lt. Gen. HR McMaster as national security adviser also boosted investor sentiment. Many consider McMaster the wisest and most capable officer of his generation, who led troops during the 1991 Gulf War and the Iraq War. His deep thinking and wealth of experience are expected to serve him well in the complex job of national security adviser.

Stocks in the news

Dillard’s falls 8.3% on Q4 earnings and lack of sales

Dillard’s Inc. (DDS) announced a disastrous fourth quarter of fiscal 2016, in which both sales and earnings missed estimates and declined year over year. (Read more)

DISH Network achieves highest profits in Q4, loses revenue

DISH Network Corp. (DISH) reported mixed earnings results for the fourth quarter of 2016, with earnings beat the Zacks Consensus Estimate while earnings remained flat. (Read more)

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