Stocks opened lower Tuesday after retail sales fell sharply in July.
July retail sales fell 1.1% from June, the Commerce Department said, exceeding consensus estimates of a 0.3% decline. The June total was revised modestly higher, to a gain of 0.7% on the month
TheStreet‘s Martin Baccardax noted that July retail sales could suggest the delta variant of the coronavirus is beginning to impact the U.S. economy.
The Dow Jones Industrial Average was down 283.04 points, the Nasdaq Composite was down 138.13 points and the S&P 500 was down 32.84 points.
Jim Cramer and Action Alerts PLUS senior analyst Jeff Marks discussed Walmart (WMT) – Get Report, Home Depot (HD) – Get Report and Roblox (RBLX) – Get Report as well as retail sales and the market catalysts Cramer is eyeing.
Watch the full interview with TheStreet Live at 10:00 a.m. ET in the video below:
Bolstered by the booming housing market, Home Depot reported its highest quarterly revenue on record. Home Depot reported adjusted earnings per share of $4.53, on revenue of $41.1 billion, exceeding analyst estimates on the top and bottom lines.
Same-store sales growth for its U.S. outlets slowed to 3.4% from last quarter’s 29.9% tally.
As of the market open, the stock was down 4.08% to $321.57.
Roblox reported a second-quarter loss of 25 cents a share on revenue of $454.1 million. Analysts had expected revenue of $684.8 million.
Bookings, a non-GAAP measure of sales used by video game companies, rose to $665.5 million in the second quarter from $494.2 million a year earlier but came in below estimates of $683.3 million.
As of the market open, the stock was down 6.08% to $74.73.
Walmart reported stronger-than-expected second quarter earnings driven by strong performance in grocery sales and back-to-school spending. The retailer reported adjusted earnings of $1.78 per share on revenue $141.05 billion.
The stock opened slightly higher amid the broader selloff, despite the the retailer saying digital sales slowed sharply over the three months ending in July.
Walmart is a holding in Jim Cramer’s Action Alerts PLUS charitable portfolio.
What Should You Actually Care About?
There are a lot things to care about, but at least for now, the Federal Reserve isn’t one of them. That was the message of Cramer’s latest column on Real Money.
“We are not economists. We don’t tend to be. We are educators trying to teach people what to care about and what they shouldn’t care about when building a portfolio.
Low on the list is the taper tape; hence, why I am ripping the tape off my face with nary a whit of pain, let alone a tantrum, which is something I threw at my old hedge fund when I was really wrong and that was because I was not yet properly medicated.”
So what does Cramer actually care about? Among the numerous items on the list is the consumer, the delta variant, Afghanistan and much more.
Read his full take on Real Money.
Hear what Jim Cramer is only telling members of his Action Alerts PLUS investing club in Tuesday’s Daily Rundown.