What I’m Watching July 26, 2022 Club Holding Walmart (WMT) spoils clothes again, announcing a big profit warning after Monday’s closing bell. Do I have to ask if Walmart is in control of things? A long trusted name, time to give up on these guys? Who is the real culprit? Do you spend too much money on food and gas? Or it’s cheap because American Express (AXP) is so high. Or is it traveling because cross-border and AMEX are on the way? Is it a pattern change as people spend less on clothes? Did they have the clothes from two years ago? Do they buy online? All of these questions are at stake, especially since mall robbers are doing it wrong, too. Club holding Amazon (AMZN) NOT a good read on Walmart: 55% third party in AMZN, different assortment of goods. Club holding Costco (COST) is NOT a good read. He usually doesn’t steal, and he’s certainly not heavy on inventory. Members only concept. Stocks will drop on Tuesday and could be a buying opportunity. Walmart terrible for all flotsam and jetsam clothing companies: Stitch Fix (SFIX), Gap (GPS), American Eagle Outfitters (AEO), Urban Outfitters (URBN), Kontoor Brands (KT), Rent the Runway (RENT) . Revolve ( RVLV ), a fashion retailer for Millennials and Gen-Z, Bank of America has doubled to sell (underperformed) from buy. However, analysts such as PVH Corporation (PVH) and Levi Strauss (LEVI). Shopify ( SHOP ) will lay off 10% of its global workforce. CEO Tobi Lutke writes to employees that he thought some of the Covid boost from online sales would remain. But he says no. Thirteen of the Club’s 33 portfolio companies report earnings this week, starting with Alphabet ( GOOGL ) and Microsoft ( MSFT ) after the closing bell on Tuesday afternoon. This is what Wall Street expects and what we are looking for. McDonald’s (MCD), like Walmart, is a Dow component. The fast-food chain on Tuesday reported adjusted second-quarter earnings of $2.55 per share versus the $2.47 expected. $5.72 billion in lost revenue. U.S. same-store sales rose a better-than-expected 3.7% in the quarter. Coke ( KO ) Q2 adjusted EPS and revenue beat: 70 cents on $11.3 billion in sales. Global unit cash volume grew by 8%. Guidance: Full-year organic revenue growth of 12% to 13% versus prior growth of 7% to 8%, free cash flow of about $10.5 billion. Still headwinds. Broad-based inflation. Recession here in convenience stores. Entertainment industry theme park business on fire. Dow Stock 3M (MMM) is spinning off its healthcare unit; placing a $1 billion earplug litigation trust in its subsidiary Aearo Technologies. 3M also reports second-quarter adjusted EPS of $2.48 on revenue of $8.7 billion. Both beat estimates. General Motors ( GM ) missed Q2 earnings and revenue: $1.14 EPS on sales of $35.76 billion. It was previously announced, staying with the projection of the year. The self-driving unit, Cruise, lost $543 million more than expected. GM also says it secured battery materials needed to build 1 million electric vehicles a year by 2025. General Electric (GE) is great at aerospace, good at healthcare, renewables and energy. Do you have all these for free with the aero so strong? GE reports better-than-expected second-quarter earnings and revenue: adjusted EPS of 78 cents on sales of $17.88 billion. Whirlpool (WHR) makes a lot more money than people think. weak USA But here’s the kicker: They say cost inflation is peaking. Cut full-year EPS guidance to $22 to $24 per share from $24 to $26. Raytheon Technologies ( RTX ) adjusted EPS of $1.16 vs. $1.13 expected; sales lose $16.31 billion versus $16.66 billion. Big delays Strong Pratt & Whitney unit. United Parcel Service (UPS): Q2 adjusted EPS of $3.29 vs. $3.16 expected. Revenues of 24.77 billion dollars against the 24.65 billion expected. All right. Paramount Global ( PARA ), formerly ViacomCBS, was downgraded twice to sell to Goldman Sachs. Goldman Sachs cuts price target on Club holding Disney ( DIS ) to $130 per share from $148; advertising market weakness, but not as bad as people think. (Jim Cramer’s Charitable Trust is long WMT, AMZN, COST, GOOGL, MSFT and DIS. See a full list of stocks here.) As a subscriber to the CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim makes a trade . Jim waits 45 minutes after sending a trade alert before buying or selling a share in his charitable trust portfolio. If Jim has discussed a stock on CNBC TV, wait 72 hours after issuing the trade alert before executing the trade. INVESTMENT CLUB IS ALTERNATE INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, WITH OUR DISCLAIMER. NO OBLIGATION OR FIDUCIARY DUTY EXISTS OR IS CREATED BY YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTOR CLUB. NO SPECIFIC RESULTS OR BENEFITS ARE GUARANTEED.
Customers outside a Walmart store in Torrance, California, U.S., on Sunday, May 15, 2022. Walmart Inc. is scheduled to release earnings figures on May 17.
Bing Guan | Bloomberg | Getty Images
What I’m watching July 26, 2022
Holding club Walmart ( WMT ) is spoiling clothes again, announcing a big profit warning after the closing bell on Monday. Do I have to ask if Walmart is in control of things? A long trusted name, time to give up on these guys? Who is the real culprit? Do you spend too much money on food and gas? Or it’s cheap because American Express (AXP) is so high. Or is it traveling because cross-border and AMEX are on the way? Is it a pattern change as people spend less on clothes? Did they have the clothes from two years ago? Do they buy online? All of these questions are at stake, especially since mall robbers are doing it wrong, too.