Wal-Mart Earnings Inspire Wall Street

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Wal-Mart reported better than expected earnings, so the investors of Wall Street felt upbeat upon hearing the news.

Investors also were pleased when Wal-Mart, the world’s largest retailer, reported third-quarter profit surpassed projections and hinted that consumer spending might be stronger than anticipated this holiday shopping season. The results also showed that heavy discounting during the period did not hurt margins, which the company said bodes well for the fourth quarter.

The report gave investors a reason to buy a day after a turbulent session pushed the Dow Jones industrial average below 13,000 for the first time since August. The advance snapped a four-day losing streak for the blue chip index.

“Over the last week there has been so much bloodshed on the Street, it’s finally enticed people back to the market,” said Ryan Larson, senior equity trader at Voyageur Asset Management. “At some point, it’s hard to turn your head when all these issues become so cheap.”

In mid-afternoon trading, the Dow rose 221.27, or 1.70 percent, to 13,208.82.

Can it continue? Only the Cynical 8 Ball knows for sure.

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