Investors are getting into the holiday mood, and the latest moves on Wall Street suggest that optimism is rising. After a pause on Monday, the Dow Jones Industrial Average (DJINDICES: ^DJI) got back on track Tuesday morning, rising more than 1% shortly after the market open.
A lot of discussion about the 2022 bear market has centered on whether the economy will fall into a recession as a result of the Federal Reserve's aggressive interest rate increases over much of the past year. Yet as some early signs of a possible peak in inflationary pressures have appeared, investors have gotten more hopeful that recovering consumers could exert enough positive force to keep the economy growing. With shares of Walmart (NYSE: WMT) and Nike (NYSE: NKE) leading the Dow forward Tuesday morning, it's evident that expectations for those businesses will be important in determining the future course of the consumer economy and the stock market.
Shares of Walmart were up more than 7% following the release of its third-quarter financial report. Not only did the company do better than many had expected, but it also projected a strong holiday quarter that could help build longer-term momentum toward a full recovery.
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Walmart, Nike Lead the Dow Higher Tuesday