• Walmart has recalled over 9,500 cases of its Great Value brand apple juice because levels of inorganic arsenic exceed FDA limits.
• Despite the extensive recall, Walmart’s share price rose 10% in August.
• Walmart’s positive earnings report on August 15 contributed to the stock’s rise.

Walmart Inc WMT has recalled over 9,500 cases of its Great Value brand 8oz apple juice sold in six-packs in PET plastic bottles. This action was taken after tests showed inorganic arsenic levels above FDA guidelines.

The arsenic level was 13.2 parts per billion, exceeding the FDA limit of 10 parts per billion. The recall affects stores in 25 states, Puerto Rico and the District of Columbia.

The problem was identified on August 15, and the recall was classified as Class II on August 23. A Class II recall indicates a risk of temporary or reversible health effects, not an immediate threat.

This is in line with FDA guidelines from June 2023, which set strict limits for arsenic in apple juice due to health risks, especially for children.

These risks include neurological effects and a possible reduction in IQ. Long-term exposure to inorganic arsenic has been linked to serious health problems, including skin diseases, various types of cancer, and heart disease.

Short-term exposure may cause nausea, vomiting, bruising and numbness in the extremities.

Despite the severity of the recall, Walmart’s financial performance remains strong. The company’s shares continue to rise and reach new records, with the most recent high being $76.22.

The stock has risen 10% since the beginning of August and is up 43% for the year. The company’s earnings report on August 15 added to the bullish momentum, with earnings of $0.67 per share beating expectations of $0.64.

This news caused the stock price to rise by almost 8% immediately after the announcement. A similar situation occurred in May when Walmart beat earnings expectations, causing the stock price to rise by 7%.

If the current trend continues and there is no major resistance, Walmart’s next psychological hurdle could be at $100 and it could be difficult for the company to move beyond that point.

After the market close on Friday, August 23, the stock closed at $75.70, up 0.16%.

This article was written by an unpaid outside contributor. It does not represent Benzinga’s reporting and has not been edited for content or content.