Walmart Beats, Cisco CEO Exclusive, Fed for Thought: Ten-Year Yield Hits 2008 High 8/17/23

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Carl Quintanilla (0:31)

Market moving insight and analysis join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC Squawk on the Street.

Sara Eisen (0:40)

Good Thursday morning and welcome to Squawk on the Street. I'm Sara Eisen with Jim Cramer, live from Post 9 of the New York Stock Exchange. Carl and David have the morning off. Take a look at Futures this morning. It's really the bond market that's in focus, and we're seeing a little mini bounce this morning. NASDAQ, Dow Futures, up 49 We're still down for the week. The S&P is tracking for a third week in a row of losses, down 1.3%.

NASDAQ, Futures, up 73 points. We've got a lot to talk about here on a summer Thursday. Our roadmap starts with earnings.

Walmart, posting better than expected. Second quarter results, raising its full year guidance. The stock is off the highs of the morning though.

Fellow Dow Components, Cisco gets a lift, beating with its quarterly results. And talking up AI, CEO Chuck Robbins will be joining us here at Post 9 this hour. Plus, investors continuing to digest Fed Minutes released yesterday. Ten year note yield hitting a fresh 15 year high. What is at stake for equities? We're gonna begin though with Walmart, Jim. Posting a beat with its second quarter results, raising full year forecast.

The retail giant benefiting from customers seeking bargains. US comps up by a better than expected 6.4% and e-commerce jumping 24% led by pickup and delivery. They're clearly taking share because they're out comping their competitors and the industry.

Jim Cramer (1:54)

The question, the question. You know, I want to straighten some things out here. I mean, when you have e-commerce up 24%, okay? When you have advertising, which is just free money, what are the gross margins there? 35%, much higher margin. Flywheel, I think, is cranking.

Price gaps, back to school, all very strong. So they gave a little bit of a light guide. I mean, that's what people are freaking out about. There are no other holes and I have to tell you, it's really a light on the operating income growth.

You buy it.

Sara Eisen (2:21)

You'd buy it.

Jim Cramer (2:22)

Now look, I mean, it did run up.

Sara Eisen (2:23)

Even though sentiment is very strong already.

Jim Cramer (2:26)

Right?

Sara Eisen (2:27)

It ran up into earnings.

Jim Cramer (2:28)

And Sam's was as good as I thought.

Sara Eisen (2:29)

Sam's up 5% or so.

Jim Cramer (2:31)

Yeah, Sam's is just okay. But I've got to tell you, I sit here and I look at this number and I think, the general merchandise was unbelievable. Okay, down low single digits, Twitter basis point improvement. Let's just sit back for a second and enjoy what is happening here. The stocks had a monster run. We can compare it to Target.

By the way, I kind of missed yesterday. I was too soft.

There was a pride issue in the month of May in Target.

Sara Eisen (3:00)

They acknowledged that.

Jim Cramer (3:01)

Right, and I soft-pedaled it. I shouldn't have done that.

I'm just saying to correct myself.

Sara Eisen (3:05)

But it does look to have stabilized because July was better and August was better.

Jim Cramer (3:08)

I couldn't quantify it, so I didn't know what to do.

Sara Eisen (3:09)

And neither could they, or they said they couldn't.

Jim Cramer (3:11)

You're right. But anyway, I think that Walmart's really good and if you want to sell Walmart, I'll buy it from you. How about that?

Sara Eisen (3:17)

Well, it's certainly better valued than, well, Target's better valued than Walmart at this point, but Walmart's not performing.

Jim Cramer (3:24)

But Walmart is the place to go, other than TJX so far.

TJX has been the star of the retail show, and you did not get that at TJX. That's okay, they do have a Brioni.

Sara Eisen (3:34)

I love TJX.

Jim Cramer (3:35)

In Vegas, they have Brioni.

Sara Eisen (3:36)

You know what I thought was interesting also is that TJX had a positive inflection in home goods, which all the doom and gloom we hear about housing from Target and Home Depot.

Jim Cramer (3:46)

And when you go there, I mean, you know, the selection was much better this month. I was thrilled. And by the way, the Thanksgiving selection, I'm told, is gonna be fantastic. They have more companies. They have the most they've ever had in inventory. Ollies is calling it a super cycle of merch. They are using Bed Bath and Beyond, older, you know, once the leases. I've been trying to get some for Pickle with my friends.