Stocks rise after strong forecasts from Wal-Mart, airlines

A big jump for Wal-Mart helped the Dow Jones industrial average set a record Tuesday, while gains for other retailers and airlines sent other stock indexes higher, as well.

Wal-Mart notched its biggest gain in almost a year and a half, 4.5 percent, after the company said it expects its digital sales to rise 40 percent in its next fiscal year. It also plans to buy back $20 billion in stock over two years.

Target rose 2.4 percent, and Amazon declined 0.4 percent after a four-day winning streak.


Katie Nixon, chief investment officer for Northern Trust Wealth Management, said Wal-Mart’s online business is critical to its survival, so investors were glad to see signs of success. ‘‘There’s very little retail loyalty now,’’ she said. ‘‘Consumers just want choice, price and convenience.’’

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The Standard & Poor’s 500 index added 0.2 percent, to 2,550.64. The Dow gained 0.3 percent, to 22,830.68. Wal-Mart was responsible for almost half of that gain. The Nasdaq Composite picked up 0.1 percent, to 6,587.25. The Russell 2000 index of smaller-company stocks rose 0.3 percent, to 1,508.01.

Airlines rose after American raised an important revenue forecast and United Continental predicted bigger profit margins. Airlines have been stung by the recent hurricanes. Investors are worried about extensive discounts on tickets, but so far third-quarter results look better than expected. United jumped 4.7 percent, and American rose 4.8 percent. Delta gave a positive update of its own a week ago, and on Tuesday it added 1.9 percent.

Chip maker Nvidia will work with Deutsche Post DHL to start testing autonomous delivery trucks in 2018. The stock rose 1.9 percent. Nvidia is up tenfold over the past three years.

Automotive parts and electronics maker Delphi slumped 1.5 percent after it announced several partnerships to develop and test autonomous cars, including a pact with a French transport company.


Procter & Gamble fell 0.5 percent after saying its shareholders did not elect Nelson Peltz to its board. Preliminary vote totals showed a close result and Peltz did not immediately concede defeat.

Peltz, of Trian Fund Management, says the company’s performance has been disappointing for the last decade.