Market Minute: Walmart Sales Edge Lower; Cisco Forecast Disappoints

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Earnings news Walmart and Cisco Systems could pressure the broader market today. Those stocks and more are what's making business news Thurdsay

The Dow Jones industrial average (^DJI) fell 113 points Wednesday. That means blue chips have lost ground in six of the past eight sessions. The Standard & Poor's 500 index (^GPSC) fell 8 points, and the Nasdaq composite index (^IXIC) dropped 15.

walmart cisco systems earnings technology retail wall street market news investing
Damian Dovarganes/AP
Walmart (WMT) quarterly earnings increased in line with expectations. But a key measure of sales edged lower, and most importantly, the company cut its profit outlook for the rest of the year. It says shoppers have been hurt by higher payroll taxes and gasoline prices.

Kohl's (KSS) net fell 4 percent and the company lowered its forecast.

But the department store chain Dillard's (DDS) topped expectations. Its net rose 18 percent.

Shares of Cisco Systems (CSCO) are set to slide and that could drag down the broader tech sector. The network equipment maker is slashing 4,000 jobs. That's about 5 percent of its worldwide workforce. The company also says earnings rose 18 percent in the second quarter, but it issued a disappointing revenue outlook for the current quarter. Cisco is considered a bellwether for the entire tech sector, because its gear is used in so many products.

The big-time, activist investors we often tell you about had to make regulatory filings this week on significant changes to their portfolios. Among the notable moves:
  • Nelson Peltz has taken a big stake in DuPont (DD).
  • George Soros bought J.C. Penney (JCP) and added to his stake in Apple (AAPL).
  • Warren Buffett's firm bought Dish Network (DISH) and increased its stakes in Wells Fargo (WFC) and General Motors (GM), but sold Kraft (KRFT) and Mondelez (MDLZ).
  • Daniel Loeb bought Walt Disney (DIS).
  • David Einhorn sold his holdings in Microsoft (MSFT) and CBS (CBS).
Several of these big time investors also turned bearish on gold during the second quarter.

And Microsoft is ready to roll out the first major update to its Windows 8 operating system -– and for the first time, it's free. Current users can get it beginning Oct. 18. It will include upgrades to the start screen and multitasking functions.


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106 Comments

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joseph0958

Shopping at WalMart is like changing the channel when you see one of those depressing reality shows like "honey boo boo" or "hillbilly handfishin". Once you've been in there, NEVER AGAIN!!!

August 15 2013 at 2:30 PM Report abuse +3 rate up rate down Reply
joseph0958

What they should blame,,,,,,are their dirty @$$, poorly stocked, mismanaged stores for people staying away like the plague...

August 15 2013 at 2:26 PM Report abuse +2 rate up rate down Reply
Ron

And you obama drones keep believing the lies about the economy getting better? Gas prices ALONE are 100% higher since he took office and have remained there! That alone has harmed EVERYONE'S pocket book. For the drones and deniers, Google: Gas Price, Dec 2008, CNN to what gas was! $1.65!!!! Just wait until the healthscare act kicks in! Just wait!

August 15 2013 at 2:20 PM Report abuse +2 rate up rate down Reply
1 reply to Ron's comment
theycallmeroy3

Ron, wtf was happening in Dec of 2008? Of course prices were down!

August 15 2013 at 2:35 PM Report abuse rate up rate down Reply
Jeff

As the economy continues to improve, Walmart will see a reduction in their sales. People are starting realize that cheaper is often MORE expensive. Walmart does a great job of selling "garbage", and then having the consumer "buying it again". Part of the joy of shopping for many consumers. If that same consumer bought something that was of quality they would not need to go and buy another quite so quickly. Hmmmmmmm....have I found an easy way to put some pressure on Walmart to give their employees full and comprehensive healthcare coverage?

August 15 2013 at 2:19 PM Report abuse +1 rate up rate down Reply
1 reply to Jeff's comment
theycallmeroy3

Not sure about that. In 2010, Walmart's highest selling item? Banana's

August 15 2013 at 2:31 PM Report abuse rate up rate down Reply
heldt666

If you, and other companies, paid your workers more they would have more to spend.
Raise the minimum wage!!

August 15 2013 at 1:47 PM Report abuse -1 rate up rate down Reply
rj121trap

Maybe when Walmart starts selling goods that are made by American workers thus putiing American workers back to work; more Americans would have money to spend there. Arn't you tired of seeing evrything from clothing to automobiles filling our stores and streets with tags that say made everywhere but here. This is problem #1
Problem #2 is between Corporate Greed sending manufacturing offshore and Unions trying to force higher wages on Corporation's for even the most menial of labor. $15 an hr to a bag of fries? Maybe the Union's will figure out when a bag of fries cost $5 and nobody buys them that
the only people that will have jobs are the Union Leaderhip. AH, America is a great place!

August 15 2013 at 1:22 PM Report abuse +2 rate up rate down Reply
drpmindmender

Walmart is cutting it's profit outlook for thr rest of the year...

...Maybe Walmart is missing the pennies of those of us who REFUSE to shop there after all.

August 15 2013 at 1:12 PM Report abuse +1 rate up rate down Reply
Kurt

Wal-Mart has done more to destroy the american standard of living and spawn the TOTAL destruction of the middle class than any, bar NONE! They were aided and abetted by both a corrupt government and a dumbed down population getting dumber by the day! When the fix for this comes in, something other than the obvious complete crash of our bankrupt(both morally and financially) nation, I'll let you all know!! Kinda drawing a blank right now!

August 15 2013 at 1:11 PM Report abuse +1 rate up rate down Reply
1 reply to Kurt's comment
joseph0958

Corporate sharecropping!

August 15 2013 at 2:30 PM Report abuse +1 rate up rate down Reply
Georgia Girl

Sorry didn\'t edit before post, I meant to say \"their prices\"

August 15 2013 at 1:11 PM Report abuse rate up rate down Reply
Georgia Girl

Wal Mart doesn't treat their workers any better than they treat their customers. There prices are higher than almost any store and if you try to speak to a manager they won't allow you to speak with the manager. When you leave your number for the manager to call you back they never call back. Almost everyone I know including me have moved their prescriptions to other pharmacies and no longer shop Wal Mart! They don't get it and don't care, they have way too much of our money to care about the little people.

August 15 2013 at 1:09 PM Report abuse rate up rate down Reply
1 reply to Georgia Girl's comment
pbgardenpet

You sure don't know what you are talking about.

August 15 2013 at 1:12 PM Report abuse rate up rate down Reply