Dollar Tree Inc jumps to yearly highs, over 10% on solid earnings

• The S&P 500 is approaching all-time highs above 3,600.
• Dollar Tree Inc shares post impressive gains with strong earnings figures.
• Best Buy Co Inc is suffering heavy losses on Tuesday.

The S&P 500 Index (SPX) It started the day on a decisive upswing and extended its rally as risk flows continue to dominate financial markets. At the moment, the SPX is up 1.6% on the day at 3,635 and is still on track to test the all-time high it set on November 9 at 3,645.

S&P 500 Major Changes

Earlier in the day, Dollar Tree Inc reported earnings per share of $ 1.39 for the third quarter and beat analysts’ estimate of $ 1.15 per share. The discount store operator’s net sales were higher than expected due to strong demand for cheaper groceries and household items during the pandemic. “We are seeing our discretionary side grow with new and old clients,” chief executive Michael Witynski said in an earnings call, according to Reuters.

Driven by these numbers and the optimistic outlook, Dollar Tree Inc (DLTR: NASDAQ) stock is trading at its highest since November 2019 at $ 109.40, gaining 12.1% on the day.

Meanwhile, the 5% rise in crude oil prices lifts energy stocks on Tuesday. As of this writing, shares of Apache Corp (APA: NASDAQ), Occidental Petroleum Corp (OXY: NYSE) and Lincoln National Corp (LNC: NYSE) are up 10.4%, 8.5% and 8.7%, respectively.

On the other hand, Best Buy Co Inc (BBY: NYSE) stock is suffering heavy losses despite the fact that the company reported better-than-expected adjusting earnings per share of $ 2.06 for the third quarter. The e-retailer noted that it expects Christmas sales to decline amid the coronavirus outbreak.

“We do not expect sales trends to remain at the levels we experienced during the third quarter,” CFO Matt Bilunas said in a call with analysts, Reuters reported.

Currently, BBY is down 6% on the day to $ 114.84 as the largest daily decline percentage of the day.