Why is the Wesfarmers share price smashing the ASX 200 today?

The Wesfarmers Ltd (ASX: WES) share price is outperforming the market despite the company’s silence. The retailer has been joined in the green by many of its S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) peers.

Indeed, consumer discretionary is up 1.37% at the time of writing. And the Wesfarmers share price is its fifth best performer, having gained 2.15% to trade at $48.93.

At the same time, the S&P/ASX 200 Index (ASX: XJO) is slipping 0.2%.

So, what might be driving the stock and its peers higher on Wednesday? Let’s take a look.

What’s boosting the Wesfarmers share price today?

The Wesfarmers share price is on the up-and-up today. Its gain follows a strong session for retailers on Wall Street. Many were buoyed by earnings from consumer discretionary giants.

The Walmart Inc (NYSE: WMT) share price lifted 5.1% overnight on the back of the retail monolith’s quarterly earnings. The company posted US$152.9 billion of revenue – an 8.4% increase on that of the prior corresponding period (pcp) – while its operating income fell 6.8% to US$6.9 billion.

Fellow retailer Home Depot Inc (NYSE: HD) also posted quarterly results, boasting US$43.8 billion of sales, a 6.5% lift on those of the pcp, and US$5.2 billion of net earnings – an 11.5% improvement. The stock gained 4% on the back of the release.

Other New York-listed retailers such as Target Corporation (NYSE: TGT) and Best Buy Co Inc (NYSE: BBY) also saw their shares rise 4.5% and 4.4%, respectively.

Meanwhile, a continuing short squeeze saw the Bed Bath & Beyond (NASDAQ: BBBY) share price surge 29%, as The Motley Fool reports.

Such international action has seemingly moved the ASX 200 on Wednesday. Consumer discretionary is leading the way today, coming in as the market’s top performing sector.

Outperforming the Wesfarmers share price on the index are those of Super Retail Group Ltd (ASX: SUL) – which reported today, City Chic Collective Ltd (ASX: CCX), Bapcor Ltd (ASX: BAP) – another company that dropped earnings today – and Premier Investments Limited (ASX: PMV). They’ve gained 8%, 3.8%, 2.8%, and 2.3% respectively.

The post Why is the Wesfarmers share price smashing the ASX 200 today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Super Retail Group Limited, Target, and Walmart Inc. The Motley Fool Australia has positions in and has recommended Super Retail Group Limited and Wesfarmers Limited. The Motley Fool Australia has recommended Bapcor and Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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