Today is Wednesday, April 5, 2023.
New to this newsletter? Sign up here.
Walmart's 2026 Automation Goal
Walmart (NYSE: WMT) outlined a series of workforce and financial goals during the company's 2023 Investment Community meeting on Tuesday.
Details: Walmart’s goal is to have about 65% of stores serviced by automation by the end of the fiscal year 2026, including 55% of the fulfillment center volume. The company says that this will improve unit cost averages by 20%. Walmart also expects to have less physical labor and a higher rate of pay.
Also: The company also reiterated its 2024 Q1 and full-year guidance. In the current quarter, that includes a 4.5% to 5% increase in sales and adjusted earnings per share between $1.25 to $1.30.
Background: The automation goal comes as Walmart recently cut over 2,000 jobs in e-commerce warehouses.
Stock Price: Walmart’s stock is up about 2% so far in 2023. The stock is also up 4% in the last 30 days.
Final Thoughts: Walmart’s automation plans aren’t surprising because the retail giant has leveraged a lot of new technologies throughout the years. The real question for Walmart going forward is about the impact of higher interest rates on consumer spending.
Notable Earnings Today: Simply Good Foods (Nasdaq: SMPL), Conagra (NYSE: CAG), Richardson Electronics (Nasdaq: RELL), Simulations Plus (Nasdaq: SLP), Schnitzer Steel (Nasdaq: SCHN), Seadrill (NYSE: SDRL).
Notable IPOs Today: ARB IOT Group Limited Ordinary Shares (Nasdaq: ARBB).
Notable Equity Crowdfunding Campaigns Ending Today: Hey Say (SMBX), Barbacoa (Mainvest).
Notable Economic Events Today: ADP Nonfarm Employment Change (8:15 a.m. ET), Trade Balance / Imports / Exports (8:30 a.m. ET), Services PMI (9:45 a.m. ET), ISM Non-Manufacturing PMI (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).
Exxon Anticipates Profit Troubles
Photo by Raymond Kotewicz / Unsplash
Exxon Mobil (NYSE: XOM) could be facing some economic headwinds for the quarter that might hit its bottom line.
Details: In a regulatory update to investors late Tuesday afternoon, Exxon says that its profits in the first quarter will take a hit thanks to lower gas and oil prices.
Background: After energy prices spiked last year, oil prices have been steady in 2023 thanks to lower demand and calmer inflation.
Stock Price: Exxon’s stock is up nearly 8% in 2023. Last year the stock was up 80%.
Final Thoughts: The recent decision by OPEC to cut oil production might increase energy prices in the second quarter.
Ethereum Showing Strength Again
The price of the cryptocurrency Ethereum jumped 5% on Tuesday to over $1,900, a level that it hasn’t reached since August.
Powering the Story: There’s a lot of enthusiasm for Ethereum mainly due to the upcoming Shanghai and Capella upgrades, which will improve the blockchain.
Bigger Picture: Most cryptos ticked up on Tuesday, although not as strong as Ethereum.
Final Thoughts: The upgrades are slated to happen in one week on April 12. For the next week, there’s a chance that Ethereum might get some nice attention.
Organize your work and life, finally. (Sponsored)
Become focused, organized, and calm with Todoist. The world’s #1 task manager and to-do list app.
Trends to Watch
Game Over: Amazon Lays Off About 100 Employees in Its Gaming Divisions (Bloomberg)
Golden Ticket: Tokenized Gold Surpasses $1B in Market Cap as Physical Asset Nears All-Time Price High (CoinDesk)
Still Behind Tesla: GM is now the second-largest EV maker in the US (Engadget)
Trouble: Jamie Dimon Says Effects of Banking Crisis Will Be Felt for ‘Years to Come’ (The New York Times)
Help Not Wanted: US Job Openings Fall Below 10 Million for First Time Since 2021 (Bloomberg)
Thank you for reading!
Forward to a friend and tell them to sign up here.
Want more investing tips? Listen to the podcast.
Show Your Support: Buy Me a Coffee.
Questions or comments? Hit reply to reach out.