Retail Sales Blowout Sparks Market Rally, Walmart Surges, Cisco CEO on Job Cuts, Earnings and AI 8/15/24

Jim Cramer (0:00)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (0:07)

Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Futures firming up here as last week's growth scare fades further into view with Walmart raising guidance, retail sales doubling estimates, best headline print in more than two years, 10 years back above three nine. Our roadmap begins with that consumer strength and Walmart's big beat.

Stock is surging pre-market all-time highs as they raise the outlook. It says they see a stable consumer health.

David Faber (0:35)

Another big earnings name to watch, Cisco. Those shares are up this after the company did top earnings and revenue estimates, even though they were both down. We're going to discuss the quarter with CEO Chuck Robbins. That'll be later this hour. And Warren Buffett's Berkshire Hathaway builds a new stake in Ulta Beauty. That stock up double digits on that 13F related news.

Carl Quintanilla (0:58)

Let's begin with the consumer. Wow, a bunch of names today. July retail sales blows out expectations. Walmart jumps on this quarterly beat and guidance. Jim comps for two.

Jim Cramer (1:08)

Sam F Sam's Club five to look the electronics on this number up 1.6 building materials up. You wouldn't have gotten that from Home Depot yesterday. The assembly, the mosaic of what's going on at Walmart is extraordinary. You've got overall boxes now deflated.

Food's been rolled back. So I know that there's a big move in Washington. Let's go after price gouges. Well, it certainly is at Walmart. Frozen veggies for a dollar selling really well. David, listen to this. Reebok, Free Assembly, Chaps, Polo USA, all showing strength. It's not just about the basics anymore. If you didn't know anything, David, we were coming out of a recession, coming out of one.

David Faber (1:48)

I know, the way that reads. And yet, I think the question was asked and answered by the analyst just on the end of Squawk there, which is, is it a sign of broad strength or is it coming at the expense of other retailers? And she seemed to believe that it was coming at the expense.

Jim Cramer (2:05)

Although Target's a huge, it's not coming at the expense of Costco. So check there. It's not. You're getting the same kind of thing in Costco as Walmart. I will say this. If anyone's been to Walmart lately, it's not the old Walmart. The fashion side is designed by people from Fashion Avenue here.

Carl Quintanilla (2:21)

You've been saying this for more than a year.

Jim Cramer (2:22)

My daughter and I go there and it's the most fun place because the basket of what you buy, and she's a vegan, they have like, I know this sounds strange, but they cater to vegans. They cater to anybody, frankly. But their stores are so attractive that they're taking people from dollar, they're taking people from literally any mom and pop. And this is a very strong show. And the.com, their e-commerce is really strong.

Carl Quintanilla (2:47)

Digital up 22, General Merchandise positive after 11 quarters, Jim.

Jim Cramer (2:52)

See, that's very significant.

Carl Quintanilla (2:53)

I know. And the other side is that we now have Ulta, Berkshire, Pershing, Nike, that's why a bunch of these names are up today.

Jim Cramer (3:00)

I mean, look, Ulta, the numbers are too high, and it's just been a terrible moment for Dave Kimball, who's a really good operator. But it doesn't matter whether it's Ulta, it doesn't matter whether it's Elf, it doesn't matter whether it's Ralph, it doesn't matter if it's Estee Lauder, they're all bad. That category is bad, it's got a lot of China exposure. This is one. You're buying Ulta because of Buffett here. Okay, so what happens on Monday? You buy it again? I mean, think about it. People are buying this up 40, there's nothing to sustain it.

David Faber (3:25)

No.

Jim Cramer (3:25)

I mean, Nike, I don't know whether he's like in or out.

David Faber (3:27)

We can talk about Apple and Nike later. I mean, I want to come back to the consumer because when Walmart says we're not seeing any sign of a weaker consumer, none. I mean, they make it very clear. We aren't experiencing a weaker consumer overall. Then they go on to talk about, of course, the four things that their customer wants, which is value, broad assortment, convenience. Express delivery. They want enjoyment buying them. I told you. I know you did. You told me, yes. They say that's a constant, but it is interesting.