What Cramer is watching Tuesday — Walmart's wreck, Dow stock earnings, big media downgrades

Published Tue, Jul 26 20229:17 AM EDTUpdated Tue, Jul 26 20229:26 AM EDT

What I am looking at July 26, 2022 Club holding Walmart (WMT) screws up apparel again, announcing a big profit warning after the closing bell Monday. Have to ask does Walmart have a handle on things? Long a trust name, is it time to give up on these guys? What's the real culprit? Spending too much money on food and gasoline? Or is it economic because American Express (AXP) are way up. Or is it travel because cross border and AMEX are up? Is it a change in pattern as people spend less on clothes? Did they have their clothes from two years ago? Are they buying online? All of these questions are up for grabs especially because mall clothiers are doing badly as well. Club holding Amazon (AMZN) is NOT a good readthrough from Walmart: 55% third party at AMZN, different assortment of merchandise. Club holding Costco (COST) is NOT a good readthrough. Typically not clothing and certainly not inventory heavy. Members-only concept. The stock will be down Tuesday, and it might be a chance to buy. Walmart terrible for all of the flotsam and jetsam clothing companies: Stitch Fix (SFIX), Gap (GPS), American Eagle Outfitters (AEO), Urban Outfitters (URBN), Kontoor Brands (KT), Rent the Runway (RENT). Revolve (RVLV), a fashion retailer for Millennials and Gen-Z, double downgraded by Bank of America to sell (underperform) from buy. However, analysts like PVH Corporation (PVH) and Levi Strauss (LEVI). Shopify (SHOP) to lay off 10% of its global workforce. CEO Tobi Lutke writes to employees that he thought some of the Covid pull-forward of online sales would stick. But he says it did not. Thirteen of our 33 Club portfolio companies report earnings this week , starting with Alphabet (GOOGL) and Microsoft (MSFT) after the closing bell Tuesday afternoon. Here's what Wall Street expects and what we're looking for. McDonald's (MCD), like Walmart, is a Dow component. The fast-food chain on Tuesday reports adjusted second-quarter earnings of $2.55 per share versus $2.47 expected. Revenue of $5.72 billion missed. U.S. same-store sales increased a better-than-expected 3.7% in the quarter. Cola-Cola (KO) second-quarter adjusted EPS and revenue beat: 70 cents on sales of $11.3 billion. Global unit case volume grew 8%. Guidance: Full-year organic revenue growth to 12% to 13% versus prior of 7% to 8% growth, free cash flow of about $10.5 billion. Still headwinds. Inflation broad based. Recession here at convenience stores. Leisure industry theme park business on fire. Dow stock 3M (MMM) spinning off its health care unit; putting $1 billion trust for ear plug litigation at its Aearo Technologies subsidiary. 3M also reports second-quarter adjusted EPS of $2.48 on revenue of $8.7 billion. Both beat estimates. General Motors (GM) missed on second-quarter earnings and revenue: EPS $1.14 on sales of $35.76 billion. It preannounced, sticking with year projection. Self-driving unit, Cruise, lost a wider-than-expected $543 million. GM also says it's secured battery materials needed to build 1 million EVs per year by 2025. General Electric (GE) great on aerospace, OK on health care, renewables, and power. Are you getting all of those for free with aero being so strong? GE reports better-than-expected earnings and revenue in the second quarter: adjusted EPS of 78 cents on sales of $17.88 billion. Whirlpool (WHR) makes much more money than people think. U.S. weak. But here's what's key: They say cost inflation is peaking. Cut full-year EPS guidance to $22 to $24 per share from $24 to $26. Raytheon Technologies (RTX) adjusted EPS of $1.16 versus $1.13 expected; sales miss $16.31 billion versus $16.66 billion. Big backlogs. Pratt & Whitney unit strong. United Parcel Service (UPS): adjusted second-quarter EPS $3.29 versus $3.16 expected. Revenue of $24.77 billion versus $24.65 billion expected. All good. Paramount Global (PARA), formerly ViacomCBS, double downgraded to sell from buy at Goldman Sachs. Goldman Sachs lowers Club holding Disney (DIS) price target to $130 per share from $148; ad market weakness but not as bad as people think. (Jim Cramer's Charitable Trust is long WMT, AMZN, COST, GOOGL, MSFT and DIS . See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Customers outside a Walmart store in Torrance, California, US, on Sunday, May 15, 2022. Walmart Inc. is scheduled to release earnings figures on May 17.

Bing Guan | Bloomberg | Getty Images

What I am looking at July 26, 2022

Club holding Walmart (WMT) screws up apparel again, announcing a big profit warning after the closing bell Monday. Have to ask does Walmart have a handle on things? Long a trust name, is it time to give up on these guys? What's the real culprit? Spending too much money on food and gasoline? Or is it economic because American Express