Watch Paul and Scarlet LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Intelligence hosted by Paul Sweeney and Scarlet Fu -Jennifer Bartashus, Bloomberg Intelligence Senior Analyst, Retail Staples &amp; Packaged Food, recaps Walmart earnings. Walmart warned that fuel costs are squeezing the company’s bottom line and could lead to higher prices for shoppers. The company said comparable sales in US stores rose 4.1%, excluding fuel, in the latest quarter, and forecast adjusted profit for the second quarter that missed analysts’ expectations. -Angelo Zino, Senior Vice President and Equity Analyst, at CFRA Research, recaps Nvidia earnings. Nvidia aims to rely less on giant data center operators and predicts other businesses and governments will become a bigger source of revenue for its chips and computing products to support artificial intelligence ambitions. The company faces growing competition from chipmakers trying to carve out a piece of the AI computing business, and major buyers of Nvidia&#x27;s technology are developing their own in-house components. -Christopher Ciolino, Bloomberg Intelligence Senior US Machinery Analyst, recaps Deere earnings. Deere shares fell sharply as farm machinery sales stayed sluggish, raising questions on when the agriculture economy will start getting better. The company kept its profit outlook unchanged as it reported fiscal second-quarter results, with net sales in its top segment of production and precision agriculture falling 14% in the second quarter. -Anthony Hughes, Bloomberg US Equity Capital Markets Reporter, discusses the future SpaceX IPO. SpaceX has pulled back the curtain on a business empire with ballooning losses and debt after acquiring a cash-hungry startup and pumping billions of dollars into futuristic endeavors. The company&#x27;s prospectus filed for an IPO reveals concerns over whether private companies are reaching unjustified valuations, with SpaceX seeking to achieve a $2 trillion valuation from the outset. See omnystudio.com/listener for privacy information.

Walmart Flags Higher Fuel Costs Eroding Retailer’s Earnings 

Bloomberg Intelligence

# Full Transcript

**Podcast:** Bloomberg Intelligence

## Participants

- **Paul Sweeney** (Bloomberg)
- **Scarlet Fu** (Bloomberg)

## Transcript

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You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m. Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts or watch us live on YouTube. Walmart coming out with its latest earnings report. Jen Bartaschis is our senior analyst who covers retail staples and packaged food. And Jen, I'm really interested in the interplay between oil prices and Walmart's sales. In particular, we know that fuel

costs are definitely squeezing Walmart's consumers. Yet Walmart says that it has managed to absorb almost all of the fuel increase. Yeah, it's an interesting dynamic when you look at it. You know, Walmart has really done a good job of shifting their business mix, which really gives them a little bit more flexibility in how they can offset unexpected high costs like we're seeing right now with fuel. The consumer for Walmart, certainly anybody in the lower end of the consumer spectrum is under some

pressure that does get amplified when gas prices are higher. And so we see that. But at the same time, what it does is it does reinforce value focused shopping, which is really Walmart's wheelhouse. And so it's almost an odd situation where the more stressed the consumer is, the more likely Walmart is to be able to serve those customers. Not that you want that to be a never ending cycle, but it is something that is

out there. You know, Walmart is actually they do sell fuel as well. And so, you know, obviously, higher fuel prices does feed their top line to a degree, especially for Sam's Club. But it is a dynamic that we're going to ...

Walmart Flags Higher Fuel Costs Eroding Retailer’s Earnings

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
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Walmart Flags Higher Fuel Costs Eroding Retailer’s Earnings

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.