S&P 500: +31.40 (+3.81%)
The biggest news story of the day was Wells Fargo reporting a first-quarter profit that beat even the most optimistic estimates, sparking a rally in financial shares. Adding to the positive sentiment were reports that banks are holding up in the government's stress tests, but some still may need aid.
Wal-Mart Stores (WMT) -3.71%
Wal-Mart again posted revenue gains in the month of March, but they fell short of lofty expectations. Same-store sales (stores open at least 12 months) rose 1.4 percent, again driven by the health and wellness, and home and grocery segments. The world’s largest retailer projects its sales growth will be at the high end of its 1 to 3 percent guidance for the quarter ending May 1.
Wal-Mart continues to focus advertising on dinnerware and drapes while slashing prices on staple food items to appeal to consumers entertaining more at home. The company expects Easter to drive April sales performance.
Other retailers reported mixed results as many are still struggling with waning consumer confidence. While some retailers cited the shift in Easter this year out of March and into the April reporting period as a reason for weakness, others noted a gain from having an extra day in the reporting period, since stores didn’t have to close for Easter Sunday in March.
Quick Hits
Peter Lazaroff, Junior Analyst
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