Retail Earnings Send Mixed Messages About US Consumer

Watch Retail Earnings Send Mixed Messages About US Consumer - Bloomberg on Dailymotion

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00:00The biggest private employer in the United States reported earnings this morning, and investors are celebrating.

00:06Walmart boosted its sales and profit outlook for the year, saying it was able to not only lure shoppers on a budget,

00:11but also handily navigate the rising cost environment.

00:14That sent shares of the company soaring for their best day since April.

00:18Well, it's just about a week away from the highly anticipated Black Friday weekend.

00:22Results out of TJ Maxx and Target showed U.S. consumers are increasingly opting for cheaper alternatives

00:27as the economy continues to show signs of stress.

00:30That's proven to be great news for discount retailers like TJ Maxx.

00:33But the pullback in consumer discretionary spending wasn't so great for the likes of Target

00:37that's been forced to mark down prices to keep up with competition.

00:41That's weighed on profitability.

00:43Tariff costs have continued to be a major sticking point for U.S. retailers, both in the clothing space and beyond.

00:49But the outlook for home improvement was a bit mixed.

00:52Home Depot warned that consumers are hitting the pause button on home remodelings and big ticket purchases

00:57as a cooling job market triggered a slowdown in consumer spending.

01:01Meanwhile, its competitor lows, pointage will pick up in online sales and growth from professional contractors.

01:07Overall, results show the U.S. retailer appears to be trading down and turning to affordable alternatives

01:12in a tough economic landscape.

01:14Results next week from Best Buy, Abercrombie & Fitch, and Kohl's should give investors a clearer picture.