Walmart continues to benefit as consumers resist high prices

Transcript:

Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.

Wall Street is no longer on recession watch. Housing, however, remains a weak spot. New construction of single family homes tumbled 14.1 percent in July, according to the Commerce Department. New projects have fallen five months in a row and now sit at a 1-½ year low. On the flip side, consumers remain resilient. Consumer sentiment for early August rose more than expected.

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Sticking with the mighty U.S. consume: Selective shopping. That’s the consumer theme emerging from Walmart and the one percent jump in official retail sales data for July.

Shoppers are shopping but they are doing so, carefully due to high prices. That penny-pinching is leading consumers to look for ways to stretch that dollar - and that’s leading many straight to Walmart.

In contrast to the somber consumer assessments given by a wide range of consumer-focused companies ranging from McDonald’s to Starbucks to Amazon to Home Depot, Walmart CEO Doug McMillon told analysts, “We aren’t experiencing a weaker consumer overall. Customers from all income levels are looking for value and we have it.”

In particular, Walmart says it continues to gain market share with higher-income customers earning over $100,000 a year, who are snapping up furniture, appliances, clothing, and toys - on the cheap.

The world’s largest retailer saw a 22 percent surge in U.S. online sales during the second quarter, which boosted total U.S. revenue to $115 billion.

That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.

Related: Walmart CEO has good news for Americans worried about the economy