{"id":63164,"date":"2022-07-26T08:58:45","date_gmt":"2022-07-26T12:58:45","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=63164"},"modified":"2022-07-26T08:58:45","modified_gmt":"2022-07-26T12:58:45","slug":"coffee-with-greta-inflation-squeezes-walmart","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/07\/26\/coffee-with-greta-inflation-squeezes-walmart\/","title":{"rendered":"Coffee With Greta: Inflation Squeezes Walmart"},"content":{"rendered":"

DJIA Futures: <\/b>-112 (-0.4%)<\/span><\/p>\n

SPX Futures: <\/b>-14 (-0.4%)<\/span><\/p>\n

NASDAQ Futures:<\/b> -60 (-0.5%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are slipping after a profit warning from Walmart and as Q2 earnings season ramps up.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Walmart Slashes Profit Guidance<\/span><\/h2>\n

Walmart <\/b>(WMT) shares are tumbling 8.6% ahead of the open after the big box retailer slashed its Q2 profit guidance.\u00a0<\/span><\/p>\n

The company announced the updated forecast in a <\/span>press release<\/span><\/a> after the close on Monday.<\/span><\/p>\n

Walmart now expects profits to fall 8% to 9% in Q2 vs its previous forecast for slight growth.\u00a0<\/span><\/p>\n

Full-year earnings per share are also expected to drop 11% to 13% vs previous guidance for a 1% decline.\u00a0<\/span><\/p>\n

Walmart says high inflation is causing shoppers to spend more on necessities like food and less on items like clothing and electronics.\u00a0<\/span><\/p>\n

The company\u2019s profit margins on food are smaller than margins on discretionary items.\u00a0<\/span><\/p>\n

The CEO said, \u201cThe increasing levels of food and fuel inflation are affecting how customers spend, and while we\u2019ve made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars.\u201d<\/span><\/p>\n

Walmart forecast same-store sales in the U.S. will rise 6% in Q2 vs the previous forecast for growth between 4% and 5%.\u00a0<\/span><\/p>\n

The news is dragging down other retail stocks in premarket trade with <\/span>Target <\/b>(TGT) dropping 5.1% and <\/span>Amazon <\/b>(AMZN) falling 4.3%.<\/span><\/p>\n

GM Slips On Q2 Profit Miss<\/span><\/h2>\n

General Motors <\/b>(GM) shares are down 1.8% in premarket trade after missing Q2 profit expectations.\u00a0<\/span><\/p>\n

The automaker reported adjusted earnings of $1.14 per share on $35.76 billion in revenue.\u00a0<\/span><\/p>\n

That missed analysts\u2019 expectations for adjusted EPS of $1.20 but topped estimates for $33.58 billion in revenue.\u00a0<\/span><\/p>\n

The profit miss came as GM was unable to ship nearly 100,000 vehicles during the quarter due to parts shortages.\u00a0<\/span><\/p>\n

But the automaker maintained its previous full-year guidance and said it\u2019s confident it will be able to ramp up production.<\/span><\/p>\n

CEO Mary Barra also said the company has \u201cbinding agreements\u201d for all of the battery-related raw materials needed for its electric vehicle plans.<\/span><\/p>\n

GE Crushes Q2 Expectations<\/span><\/h2>\n

General Electric <\/b>(GE) shares are jumping 4.1% ahead of the open after crushing Q2 expectations.<\/span><\/p>\n

The company reported adjusted earnings of $0.78 per share on $17.9 billion in revenue.\u00a0<\/span><\/p>\n

That solidly beat analysts\u2019 expectations for adjusted EPS of $0.37 on $17.8 billion in revenue.\u00a0<\/span><\/p>\n

GE had $162 million in free cash flow during the quarter.<\/span><\/p>\n

The beat came amid a strong bounce back in air travel which boosted GE\u2019s engine business.\u00a0<\/span><\/p>\n

That unit reported a 27% annual jump in revenue.<\/span><\/p>\n

The company said full-year earnings are expected to be in the bottom end of their previously forecast range, between $2.80 to $3.50 per share.\u00a0<\/span><\/p>\n

Coca-Cola Tops Q2 Expectations<\/span><\/h2>\n

Coca-Cola <\/b>(KO) shares are up 1% in premarket trade after reporting better-than-expected Q2 results.<\/span><\/p>\n

The beverage maker reported adjusted earnings of $0.70 on $11.3 billion in revenue.\u00a0<\/span><\/p>\n

That topped analysts\u2019 estimates for adjusted EPS of $0.67 on $10.56 billion in revenue.<\/span><\/p>\n

Revenue was up 12% year-over-year thanks to higher pricing and an increase in sales volumes.\u00a0<\/span><\/p>\n

Coca-Cola forecast organic revenue growth of 12% to 13% in 2022, up from its previous forecast for 7% to 8% growth.\u00a0<\/span><\/p>\n

But the company said commodity price inflation is expected to have a high-single digit impact on sales growth vs previous expectations for a mid-single digit impact.<\/span><\/p>\n

McDonald\u2019s Reports Mixed Q2 Results<\/span><\/h2>\n

McDonald\u2019s <\/b>(MCD) shares are up 0.6% ahead of the open after mixed Q2 results.\u00a0<\/span><\/p>\n

The fast food chain reported adjusted earnings of $2.55 per share on $5.72 billion in revenue.\u00a0<\/span><\/p>\n

That beat analysts\u2019 expectations for adjusted EPS of $2.47 but was short of estimates for $5.81 billion in revenue.<\/span><\/p>\n

The revenue miss was partly due to the closure of McDonald\u2019s restaurants in Russia and Ukraine.<\/span><\/p>\n

Same-store sales in the U.S. jumped 3.7% vs 2.8% expected.<\/span><\/p>\n

McDonald\u2019s said higher prices and value items fueled that sales growth.<\/span><\/p>\n

3M Tops Q2 Expectations, Announces Spin Off of Healthcare Business<\/span><\/h2>\n

3M <\/b>(MMM) shares are up 3.9% in premarket trade after beating Q2 expectations and announcing it will spin off its healthcare business.<\/span><\/p>\n

The company reported adjusted earnings of $2.48 per share on $8.7 billion in revenue.\u00a0<\/span><\/p>\n

That was better than analysts\u2019 expectations for adjusted EPS of $2.42 on $8.58 billion in revenue.\u00a0<\/span><\/p>\n

3M said it will now spin off its health care business into a separate publicly traded company.\u00a0<\/span><\/p>\n

That business will focus on wound and oral care, healthcare IT, and biopharma filtration.\u00a0<\/span><\/p>\n

It includes products like its bandages, skin adhesives, oral aligners, air purifiers, and glasses lenses.<\/span><\/p>\n

The spin off is expected to be complete by the end of the year and 3M will maintain a 19.9% stake in the new company.\u00a0<\/span><\/p>\n

UPS Slips Despite Q2 Beat<\/span><\/h2>\n

United Parcel Service <\/b>(UPS) shares are down 2.4% ahead of the open despite beating Q2 expectations.\u00a0<\/span><\/p>\n

The delivery service reported earnings of $3.25 per share on $24.8 billion in revenue.\u00a0<\/span><\/p>\n

That topped analysts\u2019 expectations for EPS of $3.15 on $24.6 billion in revenue.\u00a0<\/span><\/p>\n

UPS maintained its full-year forecast for revenue of $102 billion and operating profit of $13.9 billion.\u00a0<\/span><\/p>\n

Fed Meeting Kick Off<\/span><\/h2>\n

The Federal Open Market Committee\u2019s July meeting kicks off today.\u00a0<\/span><\/p>\n

The market is still betting the bank will approve a 75 basis point rate hike.<\/span><\/p>\n

CME Group\u2019s <\/span>FedWatch<\/span><\/a> Tool shows 75.1% of traders leaning toward that smaller movee while 24.9% are still expecting a 100 basis point hike.\u00a0<\/span><\/p>\n

Oil Prices Rise on Tight Supply Concerns<\/span><\/h2>\n

Oil prices are rising for the second day in a row as supply concerns take over.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are up 1.5% to over $98 bbl while Brent crude futures are rising 1.5% to nearly $107 bbl.<\/span><\/p>\n

Russia said Monday that natural gas sent through the Nord Stream 1 pipeline to Germany would drop to just 20% of capacity.\u00a0<\/span><\/p>\n

That is expected to increase demand for diesel as Europe will be unable to refill its natural gas storages ahead of winter.\u00a0<\/span><\/p>\n

Gas Prices Tumble<\/span><\/h2>\n

U.S. gas prices fell for the 41st day in a row today.<\/span><\/p>\n

AAA<\/span><\/a> shows the national average for regular gas fell nearly 3 cents overnight to $4.327\/gal.<\/span><\/p>\n

The national average for diesel also fell nearly 3 cents overnight to $5.386\/gal.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

DJIA Futures: -112 (-0.4%) SPX Futures: -14 (-0.4%) NASDAQ Futures: -60 (-0.5%) Good morning friends! Futures are slipping after a profit warning from Walmart and as Q2 earnings season ramps up. Let\u2019s get right to it! Walmart Slashes Profit Guidance Walmart (WMT) shares are tumbling 8.6% ahead of the open after the big box retailer slashed its Q2 profit guidance.\u00a0 The company announced the updated forecast in a press release after the close on Monday. Walmart now expects profits to fall 8% to 9% in Q2 vs its previous forecast for slight growth.\u00a0 Full-year earnings per share are also expected to drop 11% to 13% vs previous guidance for a 1% decline.\u00a0 Walmart says high inflation is causing shoppers to spend more on necessities like food and less on items like clothing and electronics.\u00a0 The company\u2019s profit margins on food are smaller than margins on discretionary items.\u00a0 The CEO said, \u201cThe increasing levels of food and fuel inflation are affecting how customers spend, and while we\u2019ve made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars.\u201d Walmart forecast same-store sales in the U.S. will rise 6% in Q2 vs the previous forecast for growth between 4% and 5%.\u00a0 The news is dragging down other retail stocks in premarket trade with Target (TGT) dropping 5.1% and Amazon (AMZN) falling 4.3%. GM Slips On Q2 Profit Miss General Motors (GM) shares are down 1.8% in premarket trade after missing Q2 profit expectations.\u00a0 The automaker reported adjusted earnings of $1.14 per share on $35.76 billion in revenue.\u00a0 That missed analysts\u2019 expectations for adjusted EPS of $1.20 but topped estimates for $33.58 billion in revenue.\u00a0 The profit miss came as GM was unable to ship nearly 100,000 vehicles during the quarter due to parts shortages.\u00a0 But the automaker maintained its previous full-year guidance and said it\u2019s confident it will be able to ramp up production. CEO Mary Barra also said the company has \u201cbinding agreements\u201d for all of the battery-related raw materials needed for its electric vehicle plans. GE Crushes Q2 Expectations General Electric (GE) shares are jumping 4.1% ahead of the open after crushing Q2 expectations. The company reported adjusted earnings of $0.78 per share on $17.9 billion in revenue.\u00a0 That solidly beat analysts\u2019 expectations for adjusted EPS of $0.37 on $17.8 billion in revenue.\u00a0 GE had $162 million in free cash flow during the quarter. The beat came amid a strong bounce back in air travel which boosted GE\u2019s engine business.\u00a0 That unit reported a 27% annual jump in revenue. The company said full-year earnings are expected to be in the bottom end of their previously forecast range, between $2.80 to $3.50 per share.\u00a0 Coca-Cola Tops Q2 Expectations Coca-Cola (KO) shares are up 1% in premarket trade after reporting better-than-expected Q2 results. The beverage maker reported adjusted earnings of $0.70 on $11.3 billion in revenue.\u00a0 That topped analysts\u2019 estimates for adjusted EPS of $0.67 on $10.56 billion in revenue. Revenue was up 12% year-over-year thanks to higher pricing and an increase in sales volumes.\u00a0 Coca-Cola forecast organic revenue growth of 12% to 13% in 2022, up from its previous forecast for 7% to 8% growth.\u00a0 But the company said commodity price inflation is expected to have a high-single digit impact on sales growth vs previous expectations for a mid-single digit impact. McDonald\u2019s Reports Mixed Q2 Results McDonald\u2019s (MCD) shares are up 0.6% ahead of the open after mixed Q2 results.\u00a0 The fast food chain reported adjusted earnings of $2.55 per share on $5.72 billion in revenue.\u00a0 That beat analysts\u2019 expectations for adjusted EPS of $2.47 but was short of estimates for $5.81 billion in revenue. The revenue miss was partly due to the closure of McDonald\u2019s restaurants in Russia and Ukraine. Same-store sales in the U.S. jumped 3.7% vs 2.8% expected. McDonald\u2019s said higher prices and value items fueled that sales growth. 3M Tops Q2 Expectations, Announces Spin Off of Healthcare Business 3M (MMM) shares are up 3.9% in premarket trade after beating Q2 expectations and announcing it will spin off its healthcare business. The company reported adjusted earnings of $2.48 per share on $8.7 billion in revenue.\u00a0 That was better than analysts\u2019 expectations for adjusted EPS of $2.42 on $8.58 billion in revenue.\u00a0 3M said it will now spin off its health care business into a separate publicly traded company.\u00a0 That business will focus on wound and oral care, healthcare IT, and biopharma filtration.\u00a0 It includes products like its bandages, skin adhesives, oral aligners, air purifiers, and glasses lenses. The spin off is expected to be complete by the end of the year and 3M will maintain a 19.9% stake in the new company.\u00a0 UPS Slips Despite Q2 Beat United Parcel Service (UPS) shares are down 2.4% ahead of the open despite beating Q2 expectations.\u00a0 The delivery service reported earnings of $3.25 per share on $24.8 billion in revenue.\u00a0 That topped analysts\u2019 expectations for EPS of $3.15 on $24.6 billion in revenue.\u00a0 UPS maintained its full-year forecast for revenue of $102 billion and operating profit of $13.9 billion.\u00a0 Fed Meeting Kick Off The Federal Open Market Committee\u2019s July meeting kicks off today.\u00a0 The market is still betting the bank will approve a 75 basis point rate hike. CME Group\u2019s FedWatch Tool shows 75.1% of traders leaning toward that smaller movee while 24.9% are still expecting a 100 basis point hike.\u00a0 Oil Prices Rise on Tight Supply Concerns Oil prices are rising for the second day in a row as supply concerns take over.\u00a0 West Texas Intermediate crude futures are up 1.5% to over $98 bbl while Brent crude futures are rising 1.5% to nearly $107 bbl. Russia said Monday that natural gas sent through the Nord Stream 1 pipeline to Germany would drop to just 20% of capacity.\u00a0 That is expected to increase demand for diesel as Europe will be unable to refill its natural gas storages ahead of winter.\u00a0 Gas Prices Tumble U.S. gas prices fell for the 41st day in a row today.<\/p>\n","protected":false},"author":41,"featured_media":63169,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-63164","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/63164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=63164"}],"version-history":[{"count":3,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/63164\/revisions"}],"predecessor-version":[{"id":63173,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/63164\/revisions\/63173"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/63169"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=63164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=63164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=63164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}