What's moving markets today

Video game maker Electronic Arts needs some new hit games. Fast.

The company reported holiday sales that missed forecasts and also issued a tepid outlook for the next quarter. Shares of Electronic Arts (EA) plunged more than 10% in after hours trading Tuesday.

EA CEO Andrew Wilson was unusually blunt about the company's recent struggles. He said in the earnings release that it was a "difficult quarter for Electronic Arts and we did not perform to our expectations."

Competition from hot mobile games and multiplayer action titles like the insanely popular Fortnite is hurting EA. Wilson said "the video game industry continues to grow through a year of intense competition and transformational change," while EA COO and CFO Blake Jorgensen noted that it was "a tumultuous year in the video game industry.”

Shares of Take-Two Interactive (TTWO), which will report its latest earnings Wednesday morning, fell after hours too. So did shares of Activision Blizzard (ATVI). The Call of Duty maker reports its results on February 12.

No new "Star Wars" movie? No problem.

Disney (DIS) reported sales and earnings that topped Wall Street's forecasts for the latest quarter. That's despite the fact that box office revenue plunged 27% from a year ago, largely due to the lack of a new movie about Jedi Masters and the Force. ("The Last Jedi" helped lift Disney in the final three months of 2017.)

So how did Disney wind up beating expectations? The House of Mouse posted solid growth at its TV networks and theme parks. Disney said that its Disney-branded channels helped lift the cable unit, offsetting continued weakness at ESPN. And a boom in political ad spending helped ABC's sales and profit. Disney also got a lift from its theme park unit, with increased tourist spending at its US theme parks and Hong Kong Disneyland.

Shares of Disney rose nearly 2% in after hours trading on the news.

Wall Street continues to put 2018's brutal ending in the rearview mirror.

All three major indexes finished at their highest levels since early December.

Consumer stocks led the steady march higher. Estée Lauder (EL) surged 12% on strong sales and guidance. Ralph Lauren (RL) bounced 8% after it boosted its guidance.

New York-listed BP (BP) shares jumped 3% on strong results that show its US shale investments are paying off.

Even Google owner Alphabet (GOOGL) closed higher 1%, shaking off a knee-jerk selloff late Monday after it reported results.

Senator Bernie Sanders and former Goldman Sachs CEO Lloyd Blankfein are having it out on Twitter over stock buybacks.

Blankfein tweeted earlier Tuesday that buybacks get "reinvested in higher growth businesses that boost the economy and jobs."

Sanders quickly fired back:

Former Goldman Sachs CEO Lloyd Blankfein promised "unrestrained tweeting" when he left the investment bank at the end of 2018.

He finally delivered. On Tuesday, Blankfein sent his first tweet since leaving the bank, and took to social media to defend stock buybacks:

Senate Minority Leader Chuck Schumer and Senator Bernie Sanders recently published an op-ed in the New York Times arguing that stock buybacks are a form of "corporate self-indulgence" and feed income inequality. They said they intend to introduce legislation to limit their use.

It's nothing but clear, blue skies for Boeing. Shares of Boeing (BA) rose nearly 3% Tuesday and closed at a new all-time high of above $410 after the jet maker announced a partnership with supersonic plane maker Aerion.

Terms of the deal were not disclosed, but Boeing said it made "made a significant investment" in Aerion to help it develop new technology for ridiculously fast business travel.

Aerion's AS2 plane will be able to travel at 1,000 miles per hour — 70% faster than current business jets. That will cut about three hours off the time of a transatlantic flight. Aerion has said it expects the first flight to take place in 2023.

Boeing's investment could help the company take even more market share from European rival Airbus. Boeing's stock has already soared 26% this year because of strong earnings, making it the best performer in the Dow.

Retail sales will grow between 3.8% and 4.4% this year, industry group National Retail Federation (NRF) estimated on Tuesday.

That's down slightly from the 4.6% increase in sales in 2018, the group said.

But NRF said that retailers remain in a strong position, despite the volatile stock market and ongoing trade war with China.

"We believe the underlying state of the economy is sound," said NRF CEO Matthew Shay, pointing to low unemployment, rising wages, and high consumer confidence.

Companies like Walmart (WMT) and Target (TGT) have gotten a boost from low interest rates and a drop in gas prices. Shay cautioned, however, that increasing tariffs on Chinese goods or future government shutdowns could damage retail.

Inequality is a growing trend that should concern investors, according to Torsten Slok, a chief international economist at Deutsche Bank.

He told First Move anchor Julia Chatterley that investors are finally taking notice of an issue they previously brushed aside.

For example, the number of children out-earning their parents continues to decline. "The trend is not your friend there," Slok said.

Slok pointed that the world has experienced chasms over the frustration caused by inequality, including Brexit, yellow vests protests in France and the rise of populism.

Those and other issues, including a decline in the rate of home ownership, change "the economic agenda very significantly," Slok said.

The US stock market hasn't been this high since early December.

All three major indexes are trading at two-month highs.

The broad rally was led by consumer stocks. Estée Lauder (EL) surged 12% on strong sales and its optimistic guidance. Ralph Lauren (RL) rallied 7% after posting solid holiday sales. TripAdvisor (TRIP), which reports results next week, jumped 5%.

The Consumer Discretionary Select Sector SPDR ETF (XLY) was up nearly 1%.

Meanwhile, Google owner Alphabet (GOOGL) continues to stage a comeback. Alphabet shares tumbled Monday evening after it posted results, but the company has trimmed its losses to less than 1%.