Walmart ($WMT) experiences an 8% decline as CFO expresses concern over October trends, prompting a reevaluation of consumer health. The retail giant notes a significant sales drop in the last two weeks of October, and management remains cautious, acknowledging ongoing strain on consumers. Despite inflation easing towards 3%, the lingering impact is evident, compounding on already elevated prices from preceding years. This retail struggle echoes broader economic challenges. Adding to worries, US continuing jobless claims reach a nearly two-year high, while a substantial -11.4% plunge in October marks the largest deep-sea water freight transportation deflation in over a decade. The convergence of these factors paints a worrisome picture of economic instability.
Comments like these are reminders that many consumers are struggling.
As household excess savings are depleted, consumers are increasingly relying on debt.
Inflation is still a major issue for consumers.
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— The Kobeissi Letter (@KobeissiLetter) November 16, 2023
🇺🇸 Walmart Falls on Cautious Consumer Outlook, Late-October Dip – Bloomberg
— Christophe Barraud🛢🐳 (@C_Barraud) November 16, 2023
Continuing applications for US unemployment benefits rose to the highest level in almost two years, underscoring the increasing challenges unemployed workers are facing in finding new jobs.
Recurring jobless claims, a proxy for the number of people continuously receiving unemployment benefits, jumped to 1.87 million in the week ended Nov. 4, according to Labor Department data out Thursday. That marked an eighth straight week of increases.
Nothing to see here folks with jobless claims… pic.twitter.com/xe2IKNjrNn
— Don Johnson (@DonMiami3) November 16, 2023
— Liz Ann Sonders (@LizAnnSonders) November 16, 2023
Amazon is pushing back the opening of a 1M SF distribution center citing macroeconomic issues that it says have affected its entire warehouse network $AMZN
— Win Smart, CFA (@WinfieldSmart) November 16, 2023