Walmart Slides Despite Q3 Beat, The Cisco Skid, Biden-Xi Summit Takeaways 11/16/23

Squawk on the Street

CNBC

Investing, Business, News

4.1 • 567 Ratings

🗓️ 16 November 2023

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Carl Quintanilla, Jim Cramer and David Faber led off the show with retail earnings and the consumer: Walmart shares fell after the company raised full-year guidance that ended up short of analyst consensus, overshadowing a Q3 beat. The anchors explored the similarities and differences between Walmart and Target – and what they mean for investors. Carl, Jim and David also reacted to Cisco shares tumbling after the Dow component cut its full-year revenue outlook. Also in focus: The summit meeting between Presidents Biden and Xi, the Chinese president's message to American CEOs, earnings winners and losers including Palo Alto Networks, Alibaba and Macy's, Morgan Stanley CEO James Gorman on inflation. Squawk on the Street Disclaimer

Transcript

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0:00.0	Market Moving Insight and Analysis joined Jim Kramer, David Faber, and me, Carl Kintania, on the opening bell hour of CNBC Squawk on the Street.
0:08.0	Good Thursday morning, welcome to Squawk on the Street. I'm Carl Kintanaio with Jim Kramer, David Faber,
0:12.0	at post night of the New York Stock Exchange. Future is a bit soft ahead of the open as we get more cautionary signals about the U.S. consumer, most notably from Walmart and jobless claims,
0:22.1	highest in two years on a continuing basis. Yields are dropping, 10-year 445, busy day for Fed speak.
0:28.6	Roadmap begins with Walmart, though, under pressure, raising the full-year guide, but it still
0:32.7	comes in below street forecasts, and it does overshadow a quarterly beat.
0:36.6	It is also a rough morning for sure
0:38.7	as of Cisco. That stock is taking it after the company cut its full year revenue outlook.
0:44.5	And we'll also have takeaways from the meeting between presidents Biden and she. That, of course,
0:48.8	on the sidelines of that Apex summit in San Francisco. A lot of earnings to get to this morning, but we will start with Walmart, sinking, almost
0:57.0	6% despite beating third quarter earnings and revenue estimates.
1:01.0	Retailer gives a cautious outlook about consumer spending.
1:03.0	Here's CFO David Rainey on the call last hour.
1:06.0	Recently, we've experienced a higher degree of variability in weekly performance in between holiday events in the U.S., including seeing a softening in the back half of October that was off trend to the rest of the quarter.
1:19.4	Sales during November have turned higher as unseasonal weather abated and we kicked off holiday events.
1:24.9	So sales have been somewhat uneven, and this gives us reason to think
1:28.5	slightly more cautiously about the consumer versus 90 days ago. Jim, people say the comp was
1:35.0	almost the opposite of Target, up 4-9, set it down, 4-9. He came from a very hot place versus a
1:40.6	cold place with Target, and we had Brian on last night. Brian Cornell was very bullish.
1:46.0	Not on the consumer, but of course,
1:47.0	his own operation.
1:48.0	I would point out, I think that John David Rainey
	...

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