The markets soared higher today at the news that the US and China have resumed trade talks. Investors completely forgot about yesterday's news that China's economy may be slowing. The Dow 30 added 396, the S&P 500 gained 22, and the Nasdaq 100 popped 32.
It wasn't all about the trade war, though. Walmart (NYSE: WMT) and Cisco (NASDAQ: CSCO) both reported earnings that came in much better than expected. Investors considered this the final stamp on a very strong earnings season.
Walmart reported earnings per share that came in 7 cents better than anticipated on strong revenue. Sales at stores were higher as well, which caused the company to raise their full year guidance. This in turn sent shares to their highest levels in almost 6 months.
Cisco shares popped to 3-month highs. The company reported earnings and revenue that were better than expected, but the main reason for investor excitement was that Cisco's subscription-based service has been steadily growing. Taking a look at Microsoft (NASDAQ: MSFT) and Adobe's (NASDAQ: ADBE) move to subscription models and their success leads investors to assume similar or better results from the likes of a giant like Cisco.
It wasn't all good news for retail stocks. JC Penny (NYSE: JCP) shares plummeted 25% to new lows after announcing a sizable miss on earnings. Earnings, revenue, and guidance all came in lower than expected as the company continues to shore up their inventory mishaps.