BOOT - Relief rally for retail after Walmart's better-than-feared earnings report

A profit guidance lift from Walmart ( NYSE: WMT ) helped the retail sector outperform in early trading on Tuesday.

While the retail giant issued a profit warning last month due to concerns over consumer spending, WMT execs said with its earnings report that it was seeing a trade-down effect with shoppers at the higher income levels buying more groceries from Walmart. Back-to-school sales were also noted to be off to a strong start and the early outlook for the holiday season was positive.

Morgan Stanley said the retail giant seemed to show that inventory and markdowns issues were under control and sees more upside than downside for the near-term.

Across the retail sector, notable gainers in early trading included The Children's Place ( PLCE ) +5.56% , Five Below ( FIVE ) +4.40% , Kohl's ( KSS ) +4.20% , Nordstrom ( JWN ) +3.41% , Boot Barn ( BOOT ) +3.31% , Destination XL Group ( DXLG ) +3.16% , Torrid Holdings ( CURV ) +3.07% , Bath & Body Works ( BBWI ) +2.98% , Victoria's Secret ( VSCO ) +2.88% , Dick's Sporting Goods ( DKS ) +2.84% , American Eagle Outfitters ( AEO ) +2.39% , Lulu's Fashion Lounge ( LVLU ) +2.30% .

Meanwhile, Walmart ( WMT ) jumped 5.46% in the first half hour of trading and is swapping hands at its highest level since the middle part of May.

Dig further into the Walmart earnings report.

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