Walmart's best sales in a decade show US consumer may be strongest in years because of the tax cut

[bullitpdq68]

https://www.cnbc.com/2018/08/16/wal...-well-because-of-the-tax-cut-jobs-growth.html

• Walmart's best growth in comp store sales in a decade comes as the U.S. consumer is showing some of the best signs of strength since the recession.
• Retail sales jumped in July, but so did the sales performance at retailers as consumers not only went shopping but spent money on travel and dining out.
• Economists say consumer spending is being helped by the tax bill and also the fact that U.S. job creation remains strong, even as unemployment dipped below 4 percent.

"There's no question that the consumer is out spending. One of the things we saw in retail sales was even though we don't have more wage growth, we have more wages. We have more paychecks. That critical mass is showing up and actually spending," said Diane Swonk, chief economist at Grant Thornton. "We have very robust spending on discretionary items. They're going out to dinner, and we know the Fourth of July holiday was one of the most traveled on record."

Walmart sales at U.S. stores open at least a year rose 4.5 percent, well above the 2.4 percent expected by analysts. Walmart had sales for the quarter ended July 31 of $128 billion, a gain of 3.8 percent.

"I think the tax cuts are certainly a factor. You just saw strong economic growth in the quarter. The U.S. economy is doing pretty well, and that's going to be reflected in numbers like Walmart's. It's about time," said Paul Hickey, co-founder of Bespoke. "Walmart is all over the country, it's middle America. I think it's a good representative of the consumer. I think we're seeing U.S. growth has been consistent. We're seeing the employment trend continues to be positive. You're seeing people come back to the workforce, the kind of thing is going to be great for Walmart."

Bespoke said the more than 10 percent gap up in Walmart stock early Thursday was the most positive gap open after earnings since at least 2001. The stock previously gapped up more than 5 percent in response to earnings in May 2016 and November, 2017. The stock had gapped down 7 percent in February in its largest decline in reaction to earnings since 2001. Walmart traded slightly positive on the year – up 0.2 percent - Thursday morning, after lagging. That compares with Amazon's 62 percent gain for the year so far. In February, its stock was slammed after it reported a slowdown in e-commerce sales in the fourth quarter.

Walmart said its earnings for the full year would reach $4.90 to $5.05, from a prior target of $4.75 to $5. It also said that its investment in Flipkart, an Indian e-commerce company would reduce full-year earnings by 25 to 30 cents per share.

 

[3Rfan]

https://www.cnbc.com/2018/08/16/wal...-well-because-of-the-tax-cut-jobs-growth.html

• Walmart's best growth in comp store sales in a decade comes as the U.S. consumer is showing some of the best signs of strength since the recession.
• Retail sales jumped in July, but so did the sales performance at retailers as consumers not only went shopping but spent money on travel and dining out.
• Economists say consumer spending is being helped by the tax bill and also the fact that U.S. job creation remains strong, even as unemployment dipped below 4 percent.

"There's no question that the consumer is out spending. One of the things we saw in retail sales was even though we don't have more wage growth, we have more wages. We have more paychecks. That critical mass is showing up and actually spending," said Diane Swonk, chief economist at Grant Thornton. "We have very robust spending on discretionary items. They're going out to dinner, and we know the Fourth of July holiday was one of the most traveled on record."

Walmart sales at U.S. stores open at least a year rose 4.5 percent, well above the 2.4 percent expected by analysts. Walmart had sales for the quarter ended July 31 of $128 billion, a gain of 3.8 percent.

"I think the tax cuts are certainly a factor. You just saw strong economic growth in the quarter. The U.S. economy is doing pretty well, and that's going to be reflected in numbers like Walmart's. It's about time," said Paul Hickey, co-founder of Bespoke. "Walmart is all over the country, it's middle America. I think it's a good representative of the consumer. I think we're seeing U.S. growth has been consistent. We're seeing the employment trend continues to be positive. You're seeing people come back to the workforce, the kind of thing is going to be great for Walmart."

Bespoke said the more than 10 percent gap up in Walmart stock early Thursday was the most positive gap open after earnings since at least 2001. The stock previously gapped up more than 5 percent in response to earnings in May 2016 and November, 2017. The stock had gapped down 7 percent in February in its largest decline in reaction to earnings since 2001. Walmart traded slightly positive on the year – up 0.2 percent - Thursday morning, after lagging. That compares with Amazon's 62 percent gain for the year so far. In February, its stock was slammed after it reported a slowdown in e-commerce sales in the fourth quarter.

Walmart said its earnings for the full year would reach $4.90 to $5.05, from a prior target of $4.75 to $5. It also said that its investment in Flipkart, an Indian e-commerce company would reduce full-year earnings by 25 to 30 cents per share.

So people shopping at Walmart is a sign the economy is much better? It used to be that more people shopping at Walmart meant they had less money to spend so they went to Walmart rather than some place with better stuff and higher prices.
I don't know what it's like in other small towns but in P.B. the restaurants are doing quite well, and I don't mean just the fast food joints. Not to say the fast food chains are cheap places to eat, it costs me plenty to take my two grandsons to Mickey D's, but the 'sit down and order' restaurants are always busy around here.

 

[bullitpdq68]

So people shopping at Walmart is a sign the economy is much better? It used to be that more people shopping at Walmart meant they had less money to spend so they went to Walmart rather than some place with better stuff and higher prices.
I don't know what it's like in other small towns but in P.B. the restaurants are doing quite well, and I don't mean just the fast food joints. Not to say the fast food chains are cheap places to eat, it costs me plenty to take my two grandsons to Mickey D's, but the 'sit down and order' restaurants are always busy around here.

There is things that the president does that drives me nuts, but right now the economy is doing well under him.

 

[FistOH]

https://www.cnbc.com/2018/08/16/wal...-well-because-of-the-tax-cut-jobs-growth.html

• Walmart's best growth in comp store sales in a decade comes as the U.S. consumer is showing some of the best signs of strength since the recession.
• Retail sales jumped in July, but so did the sales performance at retailers as consumers not only went shopping but spent money on travel and dining out.
• Economists say consumer spending is being helped by the tax bill and also the fact that U.S. job creation remains strong, even as unemployment dipped below 4 percent.

"There's no question that the consumer is out spending. One of the things we saw in retail sales was even though we don't have more wage growth, we have more wages. We have more paychecks. That critical mass is showing up and actually spending," said Diane Swonk, chief economist at Grant Thornton. "We have very robust spending on discretionary items. They're going out to dinner, and we know the Fourth of July holiday was one of the most traveled on record."

Walmart sales at U.S. stores open at least a year rose 4.5 percent, well above the 2.4 percent expected by analysts. Walmart had sales for the quarter ended July 31 of $128 billion, a gain of 3.8 percent.

"I think the tax cuts are certainly a factor. You just saw strong economic growth in the quarter. The U.S. economy is doing pretty well, and that's going to be reflected in numbers like Walmart's. It's about time," said Paul Hickey, co-founder of Bespoke. "Walmart is all over the country, it's middle America. I think it's a good representative of the consumer. I think we're seeing U.S. growth has been consistent. We're seeing the employment trend continues to be positive. You're seeing people come back to the workforce, the kind of thing is going to be great for Walmart."

Bespoke said the more than 10 percent gap up in Walmart stock early Thursday was the most positive gap open after earnings since at least 2001. The stock previously gapped up more than 5 percent in response to earnings in May 2016 and November, 2017. The stock had gapped down 7 percent in February in its largest decline in reaction to earnings since 2001. Walmart traded slightly positive on the year – up 0.2 percent - Thursday morning, after lagging. That compares with Amazon's 62 percent gain for the year so far. In February, its stock was slammed after it reported a slowdown in e-commerce sales in the fourth quarter.

Walmart said its earnings for the full year would reach $4.90 to $5.05, from a prior target of $4.75 to $5. It also said that its investment in Flipkart, an Indian e-commerce company would reduce full-year earnings by 25 to 30 cents per share.

 

[3Rfan]

There is things that the president does that drives me nuts, but right now the economy is doing well under him.

That is NOT an answer to what I asked. Since when is Walmart doing well a good indicator of the overall economy? Walmart has been up and down ever since they got to be a big deal but it is a place people go because their stuff is cheaper than other stores. Not just poor people, all people. And in many cases it's NOT cheaper just because of their volume of sales, especially outside of grocery items.

 

[millerbleach]

That is NOT an answer to what I asked. Since when is Walmart doing well a good indicator of the overall economy? Walmart has been up and down ever since they got to be a big deal but it is a place people go because their stuff is cheaper than other stores. Not just poor people, all people. And in many cases it's NOT cheaper just because of their volume of sales, especially outside of grocery items.

Cmon. If it was wholefoods you would be saying "it ain't poor folks shopping there! This just means the rich are getting richer". If Wal Mart sales were poor you would howl about the poor economy.
What WOULD be a sign of a robust economy? I want you on record so when it appears, you can't let CNN tell you why it is a bad thing.

 

[3Rfan]

Cmon. If it was wholefoods you would be saying "it ain't poor folks shopping there! This just means the rich are getting richer". If Wal Mart sales were poor you would howl about the poor economy.
What WOULD be a sign of a robust economy? I want you on record so when it appears, you can't let CNN tell you why it is a bad thing.

I don't have any idea what CNN is says makes a robust economy but I can't think of any reason to say Walmart sales is a big one. People shop where things are cheap when times are bad and some still do when times are good.