"Walmart stock surged as a new CEO takes the helm and on news of a trade deal with India, a key supplier. Walmart has reached a $1 trillion market valuation, a first for the big-box retailer. The company's shares hit a high on Tuesday morning trade as the stock continues to soar on the news of a new CEO and looming trade negotiations with India, where the Arkansas-based company maintains a large presence both in supply chain and domestic markets within India."
"On Monday, United States President Donald Trump announced a trade deal with India that would slash tariffs to 18 percent from 50 percent and that impacts Walmart, which has strategically shifted supply chain operations to India and away from China. On Tuesday, in an interview with CNBC, US Trade Representative Jamieson Greer said that the White House is still ironing out the details of the deal, but that still hasn't slowed Walmart's stock from popping on the looming deal."
"We have an announcement of an India deal, but still no timeline about when it comes into effect and whether the secondary tariffs, the 25 percent linked to India's purchase of Russian oil, when those would be removed, so I think there's still a lot of questions, economist Rachel Ziemba, founder of Ziemba Insights, told Al Jazeera. While there are limited details on the specifics of the deal, markets are responding to tariffs likely to come down. Markets are, of course, forward-looking."
Shares of Walmart surged following the appointment of a new CEO and reports of a potential U.S.-India trade deal, lifting the retailer to a $1 trillion market valuation. The stock hit intraday highs and traded about 2.1 percent higher midday. The announced trade terms would cut Indian tariffs from 50 percent to 18 percent, affecting Walmart's shift of supply-chain operations to India from China. U.S. trade officials said deal details remain to be finalized, and economists highlighted remaining questions about timelines and secondary tariffs tied to India's Russian oil purchases. Walmart operates roughly 11,000 stores in 19 countries.
Read at www.aljazeera.com
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