they find walmart and a connection with walmart ceo an introduction and walmart's pretty desperate at that as well and so they they find this marriage and mark goes mark to spend four or five years at wal-mart which we've which we've alluded to. and he gets sort of carte blanche an open, you know, open checkbook initially, at least to reinforce to walmart's digital operation as he sees fit. it does not all go well. we could talk about that. yeah, yeah, yeah. i loved it. i think mark was a bit of a polarizing figure as well i think you're you say he's a he was a great salesperson, a great visionary, but a terrible and repeatedly failed hit internal goals obviously had its clashes with. walmart's old guards and was he the right answer for walmart looking back, what's kind of your thoughts? yeah you know, that's that's a great question. and i'll i'll give the answer. i sort of given the book when you know i know people in this space initially want to know like was walmart's decision to acquire jet and really acquire mark and his team a success for one or good one or not my answer is it d

been beneficiaries, as have walmart and kroger. >> walmart did go through some inflation numbers in grocery some categories have gone up some are going back down food is still an area i think has pressure when it comes to pricing for consumers for walmart. interestingly, sara, they did say the private label penetration in grocery is up 9%. and if you look at numerator data, which looks across the board at market share, the cpg in private label percent that walmart has is far beyond everyone else. i think it's something like 29% share of private label and cpg goes to walmart, which is actually above costco and everyone loves that kirkland brand and far above target, which is 3%, i think. >> there's a lot of applause for the e-commerce growth in the quarter from walmart how much of that is grocery or necessity? do we know that mix? i think back a couple of years and target was getting all the celebration for it, figuring out omni channel. >> i think that's a great question we want to ask. we know a lot of the walmart online grocery ordering doesn't end up getting picked up in the stor

the results are walmart and the walmart connect platform are contested. it is very profitable to sell and advertise on wilmer.com, and really, that is what is attracting more sellers coming over. it is less competitive, more of a green field. and as i said, the roi, the row asked, the return on spend is really best in class. we expect that to continue. >> new names to the show. thank you for joining us here on bloomberg technology prince speaking of walmart, china's internet regulator is reaching out to foreign funds, including the retail giant. they plan to discuss ways to navigate beijing's data security rules in an effort to reassure multinationals worried about the ability to operate in china. under these latest regulations. coming up, the largest maker of can -- compute networking equipment is making headway and ai, but also security technology. we will break down the results next. those shares are up 4%. a quick look at palantir shares print down pretty sharply. 7%. not any headlines crossing the bloomberg terminal, but i would say that we have been

yes, i mean, we have had results from walmart but other - results from walmart but other discount retailersx told a story that was similar, these two saw resilience in the american consumer target. another rival had a trickier time but some of that could be contributed to controversy over its pride month merchandise. but even then these are strong profit margins. what we are learning is although the consumer is turning away from big ticket items, furniture or other things, they are still spending, furniture or other things, they are stillspending, helped furniture or other things, they are still spending, helped by what has been a relatively strong labour markets, gains in wages, particularly for lower income workers. that has helped the consumer keep up that pace of spending and that matters because they account for two thirds of our economic activity, which is why so much focus this week on what americans are shopping and what they are spending. also americans are shopping and what they are spending-— are spending. also interesting on what the impact _ are spending. also interesting on wh

some of the tech when it comes to walmart, technically walmart plus and marketplace businesses, very similar to amazon where they not only sell their goods, they sell other people's goods talks about the tech influence going on walmart and ai. some think that will help the walmart plus business because it sources products in the right places and predict what consumers want. >> absolutely. i think artificial intelligence is really going to help bouie better margins and more predictable sales for walmart's e-commerce business going forward. one thing that relates to technology is actually as it relates to automation in the distribution centers and over time, over the next three years, should help to reduce automation and fulfillment costs by 20% >> all right shares are moving higher before the report, you're very bullish on the stock what is something under the radar that investors are not paying attention to but should look for in this report? >> one thing that i think is important to key in on is especially after what was very robust amazon prime day is walmart plus week. the opportu

what do you make of walmart? >> well, i think that the walmart story is one where the general merchandise shift is helping them so going into second quarter, numbers very -- well, different than first quarter first quarter, going into the numbers, it was really clear walmart was a significant overweight, they were dynamic surrounding the economy, dynamics surrounding disinflation and i think we see less of an overweight but i think this is still a major overweight out there, remains a conservative play and it should be comps are getting upgraded into the numbers. they will be anywhere from 5 to 6.5%, i think, that's where the street is. that's significantly better than any of the other broad lines or hard lines certainly significantly better than target's going to have deceleration on the comps so i think walmart deserves to be overweight walmart's been during this period where the stock has performed, it's really done almost nothing in terms of ebitda or in terms of even the eps has been up 1 to 3% the last thre

way, target walmart kmart began since then true that walmart does better when consumer is stressed so you have to see to know what is going on walmart has been doing consistently better throughout this year by a lot not just sales where obviously, true i expect walmart positive in same-store sales, target to be negative but not just sales but profits in stock market walmart up target down, so that has been a pattern for decades, i believe true walmart executing better doing a better job of staying in stock, meeting needs of consumer target has been struggling since the pandemic. >> let me ask how amazon figuring into that competition, big bucks i think walmart has done best job blurring that online in store experience i wonder we know how to think about walmart how do we maybe think about amazon. >> great question amazon has done very well shelf stable merchandise something you can keep, everyone has not cracked food code walmart strength largest grocer in the world in the universe a brilliant job of harnessing internet to drive more food, walmart when you drive to the store put in tr

he does not own walmart.ems to be the narrative of the marvin good news walmart, bad news everybody else. is this the black hole of u.s. retail sucking everybody in and there is nothing left for anybody else? what you think of the environment you're looking at? cole: i don't think about it like that. to your point just a second ago, it feels more like a post-pandemic. during the pandemic, obviously walmart and target had a lot of benefit from people not being able to go anywhere else. walmart has continued to benefit from that because ultimately they have not been doing stupid things. that is the success on walmart, do not do stupid things. in comparison target has been doing stupid things to hurt their core consumer. if you are a mother of two kids, anything to add two-year plate in the day you would be less interested in doing business. and they said what is going on in the culture wars is affecting target. he forgot the hands that brought -- that rocks the cradle is the hand that rocks the world. and he fo

very strong for walmart. do you think that walmart is taking share online from target?t now of e-commerce is in the low teens. so anybody that is growing higher than that is gaining share and walmart is outpacing the average growth of the market it is even gaining share, i would argue, from amazon, which in north america from our estimates is in that low teen number target, for whatever reason, is losing share, the numbers are negative it is unclear why because its execution has been pretty strong and it's done pretty well through the pandemic and it has set up a lot of those omni channel strategies well to capture sales post pandemic. but it just hasn't closed the deals and i expect that a lot it has to do with assortment and the shopper choosing to purchase in other places. >> can you just talk a little bit more about whether the fed is, you know, why would the fed not watch walmart and just take it to the most granular level to see what to do next. what is it telling us, do you think, about the macro >> well, i think that what we're seeing is that there is still -- t

we are watching walmart today.s flexing his retail muscle and its gross advance in the quarter but you have to keep in mind, the stock is done relatively well this year which means a fairly high bar for investors. sonali: there is another man with a higher bar, an analyst at evercore isi and has an outperform rating on walmart with a price target of $175 per share. when you look at the troubles you see at walmart today, the market is not loving this outlook on the u.s. consumer. what is the biggest downside risk to walmart when you think about what they have said about how weak the consumer could get heading into the next part of this year into next year? >> today, the stock is down because the expectations were high. we thought walmart was doing well and they would end up beating and raising for the full year and they did that but clearly, people were position for a nice beat into today's print. fundamentally for walmart, we think the key here is that they have growing traffic again. we upgraded in march and our t

other things within walmart. i think it deserves the higher multiple >> and target has this cloud hanging over it with the woke stuff. we don't know how much that will matter a month from now, but they did not shy away from discussing how bad it was during the month of june, and walmart is not dealing with that >>> up next, mike santoli will join us with his midday word your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire >>> mike santoli is next to me for his "midday word." i would like your opinion on this idea that until the ten year and apple find some stabilization, this is the sort of mix we're going to be in. >> i think it will be hard to get too comfortable if none of those things happen. if the ten year calms down, it will allow the stock market to maybe make a little bit of what's developing slowly as a little bit of oversold conditio

and walmart.ated by how you got into the personalities, particularly kicking off the book doesn't that just phases you were at an event, i guess. and you asked him. what was he going to be wearing or whatever, but it came back. they were offended by it. or even he had bristled at it and the people around him, but they came back to what you were getting at, right? yeah, that's right. so amazon was just starting to get into making their own clothing lines. and so i knew i had maybe a minute or two with jeff before he went on stage and asked him if he was wearing any any amazon brands, and i think i startled him. he asked me if he was on the red carpet, but he regrouped. regrouped he came back. he talked about melding technology with human stylist to maybe come out with a service that amazon leader did , which was, you know their own type of personal style. and what a major exactly similar to stitch fix it, i guess because i'm intrigued with him is one of the world's certainly one of the world's rich

it is not just value anymore that walmart is going on, it is convenience.they broaden their e-commerce offer, as it gets better, as delivery speed gets better, as they add sellers to the marketplace, they are finding customers are willing to shop with more in more than just grocery. right now cyclically it might not be great, but you're building it for when it comes, whenever that recovery is there and then that could give them the extra boost in sales and profitability. >> greg, you mentioned earlier walmart is attracting some, quote, new customers who are the new customers? it is not as though walmart hasn't been around for a while >> yeah, it is a great question and i think what it is, is they spent upwards of five or ten years now really doing a lot of underpinnings to make their omni channel offering really differentiated it is coming together now as a point where as consumers are searching for value you've always had that at walmart, but as they're getting the rest of the e commerce system working well consumers want to go there. they realize the asso

more so target and walmart. should suffer paris trade on its own. >> you hate doing that. >> i do every once in a while if it gets interesting. ice cold, dan. >>> coming up, fallout from china's real estate crisis could be getting worse. one of the biggest shadow banks making payments. we've got that story next. >>> plus, chesapeake energy trades and wherehe t action is headed in two minutes. at this holocaust museum in israel, you see the names; the faces, of jews that were brutally murdered. this great cloud of witnesses cries out to us "comfort, comfort my people." we're in a race against time to reach every holocaust survivor in israel and the former soviet union. many are poor and hungry and they have nowhere to turn. naroj has had such a hard life from the day that she was born into the holocaust. we were so hungry that we would go with my mother and find the leaves and grass nd we would pick them up and eat it. still today, she's suffering with no one there to help her. dare we turn our back on her now? f

walmart wins, target loses walmart's an all-time high target is $3 away from a 52-week low. tjx on that side wins as well. it's obviously what's going on those retailers will do well in this environment the health of the consumer, i don't know trillion dollar in credit card fighting inflation, adding more debt that works until it doesn't. >> interesting, you mentioned walmart, and again, truly magnificent performance, especially relative to some of its peers like target, can't get out of its own way i think that more of a consumer staple they were benefits when inflation is a big thing and now they're benefitting with a mon raiding consumer we heard about the trade down, that sort of still if you look at the xly, sometimes you can -- it's a bit of a mirage. amazon, about 24%, tesla is about 18%, home depot, mcdonald's, lowe's, then you start getting into something that maybe feels a bit more discretionary. the xly made a new 52-week high, it's come back a little bit. that largely has to do probably with tesla, so, when i think about amazon and the results they just gave us,

-- well, target's better valued than walmart at this point but walmart's outperforming. >> walmart ishe place to go. other than tjx so far. tjx has been the star of the retail show. you did not get that at tjx. that's okay. >> i love tjx. you know what i thought was interesting was that tjx had a positive inflection in home goods, which all the doom and gloom we hear about housing from target and home depot -- >> when you go there, the selection was much better this morning. i was thrilled and by the way, the thanksgiving selection, i'm told, is going to be fantastic ollie's is calling it super cycle of merch they are using bed bath & beyond once the leases -- i've been trying to get some for pickle with my friends. they're taking them from us. >> tjx in home goods >> well, you know, when the bed bath go under, you can fit 12 pickleball courts. what are you laughing about? >> you're on trend you play pickleball? >> i've taken some lessons >> i mean, along with everybody else >> does that somehow make it worse? >> it's a good thing >> thank you for minimizing it >> what ubs is saying,

>> tells you about walmart.r them the top 3 greatest companies are created, the fact they can grow sales 5% plus when you do 600 billion in revenue is amazing. i think the consumer is okay but two things i watch that are worrying the heck out of me as savings rates have plunged and credit card usage is at a record high and interest rate on credit cards has spiked in the last year and i believe that is something that has to be watched. stuart: the market doesn't look as solid as it was maybe 2 or 3 or 4 weeks ago. what do you think? the fundamentals have deteriorated? >> higher interest rates and higher oil prices, cost of capital and cost of energy, that will do the trick, combined with valuation still freezing at these levels and that is where you get a drop, and adam johnson said it best, when interest rates go up valuations come down to a certain extent and you are seeing it. i always ask myself little questions, why is citigroup at a new yearly closing low from one silicon valley bank debacle hit so i'm worr

i own walmart, i don't own target walmart's been a great stock to own and it's not cheap, and -- but i think you stay there i think you can start to own target here. >> just one thing i want to add. tjx/home goods was a surprise beat you would hope that you would see some of that same home goods kind of, you know, higher margin stuff sell in target disappointing that it wasn't a little bit better mix. >> steve, what's your take at this point, does the stock reaction show that maybe target just got too cheap and it's time to take a look maybe the worse is behind it >> yeah, i mean, let's not forforget, we had had woke wars with target, that won't be as long lasting as many would have thought that would have been and then when you compare it to walmart, walmart's revenues, over 60% come from groceries target, it's around 20%. so, you really can't compare the two. i would still stay with walmart, but it does really reflect the kitchen sink type element to it. karen touched on it. you have back to school, then you have christmas so, there's reasons to be bullish on target, where it is ri

this morning the dow remains positive, up 92 points it's being held up by united health care and walmart, which is getting a lot of analyst love ahead of next week tech continues to be under pressure, carl as for the data flow this morning, it's really been about two reports investors are focusing on, ppi, comes in a little hot a little it wasn't extreme, but there were some weird factors it like lea pointed out. then we got the inflation expectation from university of michigan and you got a surprise on the one-year and five to ten-year outlook that's good news for the markets that are rooting for lower inflation. >> some reports on ppi and the financial management prices. i think one headline is what the stock market gives, the stock market takes away. kind of a weird meta dynamic. >> the whole reason was higher stock market let's dig into the week's economic data. against the back drop of hotter than expected ppi and cooler cpi. our next guest says the odds we see a recession from here are getting lower. joining us is managing partner, tom lee. you've been very optimistic on the market

walmart sets the tone in the nation's largest retailer reporting before the opening bell, we're watching impact on markets, the stock right now higher, take a look at futures with the firmer tone in the green, dow industrials higher after the federal reserve raised its joe biden minutes saying inflationary risks could be a cause for further tightening. a majority of members the upside to economic pressure. all of this pushing the ten year treasury yield to the highest level in 15 years. take a look at the yield 3.78 basis points this morning, everything you need to know all morning long with the yield of four-point to 9%, the european markets are in the bed, take a look at the eurozone the s&p 101 and down 13 points, the others also lower, and asia markets lower, fractional across-the-board and asia. in u.s. increasing calls for impeachment inquiry when congress returns in september. greg steube following impeachment articles less than a week before the gop debate, president trump remained in the front runner 50 plus% versus ron desantis as new reports of censorship are released over cov

i'm curious to see whether walmart is seeing that as well. or maybe it is a sign that consumers have fully adjusted their baseline. maybe they consider walmart as the baseline. >> august 15, august 24, nordstrom and dollar fee, we are starting to get toward september. i we going to see a big back-to-school season or higher rates and looming student debt repayments putting a cap on that? >> from what we have seen so far, there are -- there is some momentum. i would say a lot of back-to-school shopping has already started. amazon prime day is a big shopping day. the question with a lot of retailers like target and nordstrom -- how much of that spending that we have seen -- how much of that has been e-commerce as opposed to traditional brick and mortar's? i do think that through the end of the summer, there does seem to be some resilience. >> you talked about credit card debt. delinquencies are rising on that kind of debt, on auto loans. are you seeing the charts look alarming? >> the thing that is preventing me from being too alarmed is the res

of course, walmart is in a sweet spot. you have americans with more income coming in to buy groceries, a core item at walmart and they can sell them other stuff as well and also any commentary on back-to-school and the holiday season, i'll keep looking. maria: we've got comp store sales up 6.4% is what i'm looking at and it's also raising its fiscal year outlook. that's also a positive. >> for the second time, maria, yes. this year. for the second time this year. maria: and the stock is moving on all of this, up 3% on walmart. lauren, thank you. we're going to be watching walmart. this is setting the tone for markets this morning. of course, walmart is a dow component, dow industrials up 81. it's time for the word on wall street. joining me is managing director of private wealth advisories, kathy enwhistle, walter todd and mark tepper. walter, let me get your reaction to the walmart quarter. >> we heard yesterday that traffic at target was down 5%. looks like all that walked across the street and went to walmart. so very s

>> well, i do own walmart, i do own target, and a target/walmart spread. i feel like they -- walmart executed the best of the bunch. and so, it's not cheap, though. it is not cheap. the reason for the spread is the divergence between the target multiple, which has been hit, i think excessively so, and the walmart multiple, it's too big of a spread. >>> our next guest warns the end of summer could be a bummer. the fed's doves are getting more vocal, job growth is hitting a brick wall and gdp is doing something it has never done without a recession following close behind. david rosenberg joins us now with more on why september could lead into a winter of discontent. david, great to have you with us. seems like everybody and their brothers have given up the call for a recession. they have gone into soft landing, no landing camp, and here you are, you're saying recession is still on the horizon. why are you so firm and steadfast in this call? >> well, look, you know, it's -- i've been in this business for 40 years and i think i've seen it all, or mostly seen i

yeah, of course, walmart sells all of that as well.ut if it's weaker for them, it just doesn't take a bigger -- as big of a chunk out of their business as it would for target, because of the percentage of sales. so, i don't think that walmart is going to come out unscathed from things like lower discretionary spending in those categories i'm sure that shrink is also a problem for walmart, as it is for target and across the retail industry right now but i think they have other levers they can pull to sort of even things out when you're looking at the big picture, total quarterly numbers for a retailer like walmart. >> have we corrected the issues around inventories, whether it's for target orfor that matter walmart or anybody else who spent the better part of last year talking about how bloated they were? >> yeah, i think for the most part, yes. inventories have been corrected, and what we learned from target today is that their inventories were down 17%, and that is a really big number but the context is super important, because as you

million customers to walmart every week.f you think about that, that's larger than the most recent super bowl in terms of viewership. >> every week. >> it's really important to know that amazon has really been leading the charge here. we have google and meta, the two leaders. but amazon is growing really quickly in this area and is really becoming a major third source in the digital ad market and really demonstrating to other retailers, hey, maybe you should get. >> it's not great as a user experience at the end of the page, item number 13 is maybe the item i'm looking for. >> they're listening to what i'm saying alexis is listening. let me ask you how relevant. often used to be that when you were heading into an election year, heading into an olympic year, that the advertising business benefitted. is that still -- does that still, julia, hold as true atz used to? >> well, for the business of tv advertising, it is definitely true for the olympics and anything involving the olympics which is, of course, on our sister network,

jonathan: we have just heard from the walmart the. -- walmart ceo. one to come back in loan repayments. we heard something from target, resumption of the payments will call additional pressure on already constrained consumer budget. you have any take on what is going to happen for some of those names? scott: what i would say on this, with the retailers there are a couple of things going on. expectations for consumer discretionary came down the hardest last year. he set going into this year is a interesting one regarding recession were risk is -- risk is priced in. yes we are going to have to contend with higher inflation. throw in student loan debt issues coming in here. we still have rising wages and engle that there is a obstet two -- offset student loan payments in what you're earning on savings your at what i think is important is looking at the retail landscape. how these companies are able to manage a fairly next set up. --mixed set up. in so doing you invert a lot of traditional business affects. this is a theme we think it is underplayed in t

ashley: you mentioned walmart real bellwether if there ever was one. what are you looking for there? >> walmart, barringer sister publication reported troubles for mainland china, people's republic of china, the piercy economy over the week and today. walmart has substantial operation so expect target to guide down because of struggles international into cash and credit consumer locally. target is the number one retailer for food and for grocery in your great prior segment on u.s. steel walmart and kroger and albertsons out of necessity have a proposed merger in front of the federal trade commission and then we will lower prices to consumers as kroger has lowered prices 5 billion in the last year and it will help independents and family-owned operated retailers with their procurement power, costco, walmart and amazon have really buying practices where kroger is much more enlightened as is target. >> we have retail sales numbers for july coming out tomorrow morning, what are you expecting, what is the psyche in the state of the u.s. consumer. >> i think

of retail, what does walmart tell us. >> july retail was strong. points at the fed can say look over here but i think tomorrow from walmart 60%, they are getting the wealthier customer trading down that is where the majority of the growth is but as inflation comes down so do their comp store sales and weedeater rebound in discretionary and we gotta listen for that. but walmart has the power to pass on prices and food hands down so they will continue to gain share. maria: even though the cheapest or not the cheapest. >> they are the cheapest and they will continue to take the opportunity when everybody else is edging up prices to give some back and gain the share and loyalty for the long-term. >> to stacy's point don't forget walmart has tremendous e-commerce capability and it can be to be built around their products not only are they moving groceries but the doing things digitally i think that will give them straight when other retailers falter. maria: it is interesting when you talk about it economy that is slowly but surely looking better from an

teachers can go on to walmart.com and walmart app. help them offset the cost of book wins and organizationers bulletin board sets you see all this stuff they need for classroom. big post-it kits and crayola markers and just great stuff. makes it easier for the educators to get all the stuff they need. >> steve: go walmart.com and look at the registries. >> absolutely. lastly guys, listen. basically one stop shop. everything you need. even tech. these great h.p. laptops all for under $200. they can find headphones so these are all around under $15. also, fashions for the kids. great stuff. listen, believe it or not, i buy a lot of wrangler and stuff they have it at walmart. i'm wearing my wranglers today. they got great fashion and foot wear for the kids. licensed backpacks. check out the ninja turtles, marvel. what is cool about that. coming in five piece sets. so you get a lunch bag. you get the backpack, a pencil holder. >> steve: it all matches? >> all as a set. >> ainsley: don't you remember how awesome that was when you went to s

we expect that to continue to buoy results ahead of when we hear from walmart tomorrow.cks over five years because the function defaults to that on bluebird. target had such a great pandemic. they just shut up and have now come crashing back down. walmart was checking along, and it looks like that stock is about to overtake target over five years. if you put amazon up there, they have only returned 44, 40 5%. they are doing worse than walmart and target, but none of them compares to costco, up 170%. this is a company that is doing a lot better than the others. is it going to be a beneficiary? corey: we think so. one remarkable thing about cosco is the membership metrics have continued to be incredibly robust. although the business is a joint or $25 billion enterprise, -- $225 billion in price from profit margins are relatively slim. it is predominantly membership dollars. on the back of sam's club raising its membership fee from $45 to $50 for the base, we think now might be a good time for costco at some point on the horizon to raise its membership fee and provide anoth

>> kroger has lagged costco and walmart.if you look at the chart we have a perfect instance of converging trend lines. we're at the end of the runway, the apex of the formation, you have to make your bet. i think it gets resolved up, not down. >> all right, up next, one of last week's trades going way out of bounds so how should you change the strategy at halftime? >>> dick's sporting goods lookback is next. >>> don't miss a cnbc special taking stock, that is tonight at 6:00 p.m. right after "options action." we'll be back in two minutes. how can you sleep on such a firm setting? gab, mine is almost the same as yours. almost is just another word for not as good as mine. save 50% on the sleep number® limited edition smart bed. plus, 60-month financing on all smart beds. shop now only at sleep number®. >>> welcome back to "options action." last week brian laid out a way to play dick's sporting kboods ahead of results. we know how that one played out. dick's down since then. brian, how are you managing it now? >> it wasn't a go

we break down the walmart. strong online growth. the largest maker of computer networking equipment making headway in ai. and in security technology grid we break down cisco's results. meanwhile,

the widening gap copes getting wider here watch what's happening with amazon target and walmart, walmartres drifting lower, down about 2% target keeps bouncing. remember, target hit a 52-week low not long ago these two stocks reacting to walmart. walmart was good, better than expected profits and revenues with the full-year forecast. grocery and ecommerce driving this so still, walmart is sitting right near record highs. >> those are the ones to compare, especially after target's numbers yesterday, which were sort oh of a mixed bag. dom, thank you very much appreciate it. >>> beyond those big-name retailers, a new call on the street digging into the discounters with student loan payments set to resume this fall our next guest says it's time to pay attention to the deep value names. joining us now is the managing director and senior research covering the retail space at loop capital anthony, welcome i know you put a high value on the predictive value of consumer confidence measures. those measures hit a high last month from 2021. that being the case, why are you leaning towards those more

has sam's club walmart has international business walmart has a much larger alternative profit streamltiple but i think it could be higher than where it is now. >> okay. we're going to leave it there. thank you. appreciate it. >> thank you >>> coming up, we're going to talk markets, get you ready for the trading day ahead. futures have turned south. arey're all red across the bod. stay tuned, you're watching "squawk box" on cnbc grow thickr with just one capsule a day of advanced hair complex. conquer hair thinning... ...and fall in love with your hair all over again. only from nature's bounty. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. i need it cool at night. you trying to ice me out of the bed? baby, only on game nights. you know you a

i think that really has helped walmart through this.onlyjust appealing to their traditional customer base, but they are also appealing to those more affluent customers who are being more cautious and turning to walmart to buy their groceries and other basic needs. that is the story here of these quite frankly really strong results, stronger than people were expecting. it wasn'tjust in—store sales that were up, it was also online where they saw a 24% jump from one year ago to to date. and so taken together, the company has said it now expects to make more money for the year. walmart can often be seen as a barometer for america in general — what is it telling us about the us consumer? i think going into this week where we have heard from a lot of retailers in america from target, to other discount retailers, and other government retail sales data, the picture that is emerging of the american consumer is one that is resilient. i think we knew that. certainly that was evidence in the spring. it has been confirmed again that they have held u

target, walmart.irst among them, a year in 2022 that is characterized by big markdowns, big hit process. what you are seeing this year is a continued weakness in demand for the discretionary goods. toys, electronics, apparel. we have to be cautious in terms of buying more of those goods. that's why you could be seeing some weakness in that regard and frame, but groceries are, yes, they are holding up strongly pre-a lot of resilience there. a lot of strength in walmart, even with target, which is having a sales problem. they ever ordered a healthy growth in the food and beverage operation. i want to hone in on walmart, specifically. walmart, unlike target and home depot, and tj, they have had this kind of you'll component as well. people go to walmart and get the groceries and they go to your car as well. where does the oil component fall for them as well? >> for them, it is actually not a huge part of the business. it is definitely something you see more as a tool to get people into stores, and of cou

walmart has 47 u.s.eaking of avenues of growth, trying to beef up how much money they bring in. stuart: it's wonderful. >> like little hotdogs? then there. or if it's q-tips, what am i going to do? stuart: your entire report is all good. if i'm a walmart shopper, i love these extra things and don't care if i read and add at self checkout. >> i'm a little annoyed about self checkout in general because you have to bring your own bags, take yourself out. stuart: the horror. >> put in your bag, figured out and pay high prices. stuart: you like bringing your own bags. >> i always forget it. stuart: save on the plastic stuff. mr. environmentalists. >> the bags carry a lot of germs, i hope you're happy. >> you're going to pack up and check yourself out and pay the bill. >> a bunch of 3-year-old in tow, he's doing it saturday was to those of his thing and there you go. with got kids crawling all over us like shut up. stuart: head of human resources, at&t leaving -- so what? >> she's leaving in the midst of at&t

and walmart trades about 30 times earnings.es about ten. so if grocery is the place to be i wouldn't mind owning at ten times earnings and, in fact we do own it here. that said, this isn't really a growth stock. the one thing that walmart could say for itself which kroger can't is they're trying to expand into digital direct to consumer types sales as well as expand grocery presence in physical store, and that's not really the case for kroger. this is a company that holds in there. trading at a cheap multiple. it pays a dividend, about 2.5%. this is a stock that's reasonably valued. it doesn't move a lot on earnings, and as you point out, they're going to be reporting in a couple weeks. this is a stock that sets up well for a covered call if you own it or a buy right if you don't. in a buy right, guy stock around 35.$.70 or so. when you look to sell an upside call. important thing when selling upside calls i typically don't like to sell them for less than 1% of the current stock price and i also like to keep relatively short da

walmart is much more discretionary, walmart has huge food business, target's got a small food businesst all in all, they do compete with each other. and walmart's winning the game we'll see that when they release tomorrow so i'm just not impressed with what target's done the street traded them up, because the expectations were so low. but that was a pretty bad sales numbers. >> what does target need to do you're into this at a level few people in the world are. what does target need to do to improve performance and juice the stock? >> well, target's out of to bes at the shelf level, the stuff that suspect there and can't buy it or high at the moment which means they're having inventory level problems so they have to fix that before we'll be happen dwri with what they are delivering. they have had an inventory problem now for almost two years and fixing it gradually. but it's cost them money each time they have tried to fix it they're not there yet. will they get there? yes. will the consumer help them some as they become more interested in discretionary goods opposed to vacation probab

you know, i like walmart, i'm long walmart, it's performed much better than target, which i also sadlygetting to the upper -- the upper edges of the pe multiple, i think, so -- i wouldn't be adding to it here. but they've done a great job i mean, they don't get anywhere near a -- well, who knows who an amazon retail is, because it's o overshadowed by aws. >> 24 times next year's -- >> little higher >> karen is probably right starting to get to nose bleed level. buff you have to admire the call ahead of earnings. given the run that the stock has had, that's a ballsy call. it's a valuation thing and it's a margin thing, as well so, if i that can start to turn the needle a little bit on margins, it's not ridiculous to see the stock here, given the fact we've just broken out from an all-time high >> we're going to do it's so good it's blank, carter, but i have to ask you the same thing for walmart here what is your take on this new high >> yeah, well, it's such -- it's not to say feeble high, but it's a small, incremental new high. i don't think it has the twerk, the ability to really brea

our picks are the top share leaders, walmart, costco, as well as lvmh walmart is also getting a higheron our survey, 9% growth at over 100k. >> is the controversy over for target i mean, the stock price, you don't attribute any of that to woke and broke >> we're watching it what's happening is it's a very diversified product line target has bigger issues in terms of consumer demand. >> there's target. you can't tell me that some of that's not -- you go -- >> we had so many -- we had issues, joe, before. >> i know, i know you had inventory issues they messed up what they had on shelves. budweiser hasn't had any issues? disney hasn't had any issues with those things? >> target is a very twdiversifi product assortment. >> they've had a lot of screwups other than apparel. >> all of retail has had issues in terms of these issues shrink's another problem too student loans are another problem too. we're really looking at across a lot of cautionary issues in addition to thinking about inclusivity, diversity, and thinking about the new younger customer too >> it's a pretty big fwap. it's like a

home, apparel, hard lines like electronics and that's what's hurt target relative to walmart. but what's happening with overall share? >> i think that's a really good question and i don't think that we know for sure because obviously, walmart, too, in the past quarter, we'll hear from them tomorrow for more detail, also talked about weakness in those discretionary categories i'm not totally sure they're picking it up. but we heard from tjx today and look at those numbers. their comps are up 6%. when it comes to amay recall, maybe the target shopper that was previously going to target is now moving to tjx but i also think that we all know that we're spending more on travel these days, on these other discretionary-type of services or other discretionary-type of spending so maybe that share in general has waned across the board no one has recaptured it, because that's not where consumers are spending their money right now. that's a really important question that we need to ask and it's a bigger problem going forward with a market share issue with target in general >> well, it doe

is that something that target can use to take on walmart because i know having covered that company,he e-commerce strategy is in the moment, pick it up. rachel: it is what the industry likes to call by online and pick up in store and it is profitable so the retailers want to encourage consumers to shop that way and target is trying to do that. they are encouraging people to come into the store with starbucks pickup but walmart has made a major push, a big part of becoming a walmart plus subscriber is having even after pickup, faster delivery. target has to answer the question, how are they going to beat walmart at buy online, pick up in store? ed: rachel tipograph, always great to have you here on bloomberg technology. crypto firm bitgo -- we will speak to the ceo mike belshe. that is coming up on bloomberg technology. ♪ wow, you get to watch all your favorite stuff. it's to die for. and it's all right here. streaming was never this easy, you know. this is the way. you really went all out didn't you? um, it's called commitment. could you turn down the volume? here, you can try. get w

walmart. i don't understand this. walmart is reducing pay for its pharmacists. loss drugs. so popular, huge sales. can't keep them in stocks. why? there is very little competition so manufacturers don't negotiate prices for the pharmacy. it's not a profitable trade. they are reportedly asking their pharmacist to take voluntary pay cuts and reduce their hours. they are in one hundred $40,000 a year. not including benefits. stuart: i'm astonished weight loss drugs would have this result for walmart pharmacists. lauren: they bring in the customers but a lot of that goes to the drug company. >> know -- walmart -- of the when you are in good shape. >> i'm doing good. lauren: a report that walmart, walgreens and cvs taking patients from the traditional doctor's office -- stuart: the down movement, one 12:45%. i see rivian is down. the ceo, did he get a big increase? lauren: base salary from $650,000 a year, equity awards of $15 million. he gave me the price for rivian, 80% of its value looking forward, making 50,000 this year. stuart: i see a lot of them. good-looking

target, walmart, big names reporting next week.ng by with what he'll watch when we take you inside what's it called? "the market zone." by the way, next week, on monday, not missing my sitdown with ron desantis. down to florida, meeting, speaking with the governor as well and watch the full interview monday 7:00 p.m. eastern time on "last call "closing bell" will be right back. ( ♪♪ ) ( sfx: people cheering ) ( sfx: stock exchange bell ringing ) ( ♪♪ ) ( ♪♪ ) ( sfx: people celebrating ) ( ♪♪ ) ( sfx: people celebrating ) ( sfx: stock exchange bell ringing ) mlb chooses t-mobile for business for 5g solutions... ...to not only enhance the fan experience, but to advance how the game is played. now's the time to see what america's largest 5g network can do for your business. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. life is for living. let's partner for all of it. i'm so glad we did this. edward jones power e*trade's award-winning trading app makes trading easier. with its customizable options chain, ea

it is still positions target in walmart.e deal in the sense you can bring these companies together. i note there are more of those middle aspirational brands. you can operate them more efficiently and you can allocate resources to the different brands and make it more profitable and make them a stronger venture to put forward. we like that lineup and the strategy. the capri side has been languishing for a little bit. i think if you put it together you could make a go of it. in the near term, the consumer is still under a lot of pressure. discretionary has big -- has been slow. big-ticket discretionary sales have been slow. that is where we are heading into this earnings season. jonathan: wal-mart year to date outperforming target. underperformance from target. there is a word i don't like around the retail names. it is shrink. one of they call it what it is? theft. how much will would be talking about that next week? joe: we will hear a lot about shrink. target has laid it out and said they are expecting about $500 million.

is shopping at walmart.consumer? >> the consumer is much more deliberate. we're seeing foods prices going up, gasoline prices going up. it means consumers are being more deliberate, more careful. they've got back-to-school spending but the question will be it's just as you said, the higher income have been going to walmart. are they going into the other aisles where the margins are higher? that's going to be an important question for the analysts and the market. maria: mark tepper is on set with me today. >> quincy, i have a question for you, the analysts on the street, people sitting at home have been expecting a recession now it seems like for at least two or three quarters. it still hasn't happened. economic data is still coming in above expectations. the market's up 16-ish percent year-to-date. and then the fed fund futures are expecting five rate cuts next year so who is right here? i mean, is there a recession that is possibly going to happen at some point over the course of the next three to four quar