Market Sentiment Steadies Despite Trade Tensions
After several days of steep losses triggered by escalating trade tensions between the U.S. and China, Wall Street took a breather today. The selloff paused, and cautious optimism returned to markets, with both tech and consumer sectors showing resilience. Dow Jones Industrial Average (DJIA) was down earlier but is up now by more than 7%. Among the top gainers were Delta Air Lines (DAL) and Walmart (WMT), whose share prices rebounded sharply on the back of positive earnings and investor positioning.
Delta Stock Soars on Strong Q1 Earnings
Delta Air Lines (DAL) shares surged over 23% today, driven by better-than-expected results for the first fiscal quarter. The stock, which had closed just under $36 the previous day, opened with a bullish gap and climbed above $38 during the session.
Delta reported an adjusted earnings per share (EPS) of $0.46 and revenue of $14.04 billion, beating Wall Street forecasts of $0.39 EPS and $13.89 billion in revenue. While the airline guided for second-quarter EPS between $1.70 and $2.30—slightly below the $2.41 consensus—it refrained from updating its full-year outlook due to ongoing economic uncertainty.
Although Delta lagged behind its domestic rivals United Airlines (UAL), American Airlines (AAL), and Southwest (LUV) in 2024 passenger profitability, it posted decent metrics with a PRASM (Passenger Revenue per Available Seat Mile) of 16.78 cents, while CASM (Cost per ASM) came in at 19.69 cents.
Walmart Rises as Bargain Retailers Regain Ground
Walmart (WMT) also bounced back strongly, recovering $8 on the day after opening with a positive gap. The stock, which was down more than 20% since its December high of over $105, is now trading around $90, or 10% higher.
The rebound follows optimism surrounding the company’s upcoming first-quarter results, due on May 15. Walmart has guided for sales growth of 3% to 4% year-over-year for Q1, though its outlook for fiscal 2026 has been conservative. Last quarter, the retailer barely beat expectations, and investors will be watching closely to see whether inflation and tariffs weigh further on margins.
Following the U.S. tariff announcement, Walmart and other major retailers like Costco (COST) saw a pullback last week, amid fears that increased import costs would either shrink profit margins or push prices higher for consumers. However, some analysts believe value-focused chains like Walmart could ultimately benefit if shoppers become more price-sensitive. CEO Doug McMillon reaffirmed the company’s focus on keeping prices low as a core strategy.
Outlook
While today’s bounce in Delta and Walmart helped stabilize broader indices like the Dow Jones, much depends on the next wave of trade headlines and macroeconomic data. Retail earnings and airline sector performance will remain key barometers of consumer strength and sentiment in the weeks ahead.
Alerts
Rates
Calendar
Signals