Here are the top news, trends, and analysis investors need to start their trading day:
1. Dow Futures Pop on Walmart, Home Depot Strength
Traders on the floor of the New York Stock Exchange.
2. Three major retailers outperformed earnings expectations for the first quarter
Shoppers wear masks while shopping at a Walmart store in Bradford, Pennsylvania on July 20, 2020.
Brendan McDermid | Reuters
Walmart’s earnings in the first quarter rose above estimates due to past grocery sales and e-commerce growth. The retailer said more shoppers went to its stores and website to do stimulus checks and prepare to reconnect when Covid cases drop and vaccination rates go up. Earnings per share were $ 1.69. Revenue grew nearly 3% to $ 138.31 billion. Walmart raised its outlook for the year.
A customer wearing a protective mask loads wood onto a cart at a Home Depot store in Pleasanton, California on Monday, February 22, 2021.
David Paul Morris | Bloomberg | Getty Images
Home Depot beat first quarter earnings and sales expectations as consumers swirled around their homes for more than a year after the pandemic. Net sales increased nearly 33% to $ 37.5 billion. Earnings per share were $ 3.86. Home Depot has not published an outlook for the 2021 financial year.
A man buys clothes in Macy’s department store in Herald Square in New York.
Trevor Collens | AFP | Getty Images
Macy’s shares rose around 6% in the premarket on Tuesday, shortly after the department store chain reported a surprising profit in the first quarter as stimulus checks and vaccine rollouts gave consumers more money and more confidence to return to the mall and freshen up their wardrobes. Better-than-expected first quarter revenue increased 56% to $ 4.71 billion. Macy’s has also raised its financial outlook for the full year.
3. Amazon is reportedly in talks to buy MGM Studios for up to $ 9 billion
Daniel Craig plays James Bond in “No Time To Die”.
According to several media reports, Amazon is in talks to buy Metro Goldwyn Mayer Studios worth up to $ 9 billion. MGM’s film and TV treasure trove includes the franchises James Bond and Rocky, as well as “The Handmaid’s Tale” and “Fargo”. These conversations, first reported by The Information, emerged the day after AT&T agreed to break out the WarnerMedia film and television unit as part of a merger with Discovery.
4. Warren Buffett’s Berkshire Hathaway builds new Aon stake and strengthens Kroger
Warren Buffett at the Berkshire Hathaway Annual Meeting in Los Angeles, California. May 1, 2021.
Gerard Miller | CNBC
Warren Buffett’s Berkshire Hathaway made a number of changes to its stock portfolio last quarter, including adding a new bet on UK insurance company Aon and increasing its stake in grocery store owner Kroger. Berkshire also added its relatively new Verizon position and reduced its stake in Chevron, another new bet. Apple remained the largest single holding in Berkshire’s stock portfolio.
5. Michael Burry of ‘The Big Short’ reveals a bet against Tesla
Michael Burry attends the New York premiere of “The Big Short” on November 23, 2015 at the Ziegfeld Theater in New York City.
Jim Spellman | WireImage | Getty Images
Famed investor Michael Burry announced a short position on Tesla worth more than half a billion dollars in a filing for approval on Monday. Burry, whose company is Scion Asset Management, became famous for betting against mortgage securities prior to the 2008 financial crisis. Burry has been featured in Michael Lewis’ book “The Big Short” and the subsequent Oscar winner of the same name. Tesla stock had a tumultuous 2021, down 18% at close of trading on Monday, and down nearly 36% from its all-time high of $ 900 on Jan. 25.
– Follow all market actions like a pro CNBC Pro. Get the latest information on the pandemic CNBC’s coronavirus coverage.