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    Walmart unveils virtual fitting room to push shoppers to buy more clothes

    Walmart is launching a virtual try-on tool to help shoppers see how a shirt, dress or another clothing item would look on their own body.
    It is the latest way that the retailer is using technology from Zeekit, a startup it acquired last year.
    The discounter is launching the tool as some shoppers trim back purchases of discretionary purchases, such as clothing.

    Walmart is rolling out its latest version of virtual try-on, which allows shoppers to upload an image of themselves and see how items would look.

    As some shoppers reduce their spending on clothes, Walmart is rolling out a new tool that it hopes will nudge them toward clicking the “buy” button.
    Starting this week, customers can use a virtual try-on tool to see how a shirt or another clothing item would look on their own bodies. It is the latest feature the company has added to its website because of the acquisition of Zeekit, a virtual fitting room startup.

    The retailer launched its first iteration of the tool in March, which allowed shoppers to choose a model that resembles them in body type, skin tone and hair color. It later expanded from 50 to 120 models. Other retailers have experimented with virtual try-on, too, including Amazon, which has a tool that uses augmented reality to allow shoppers to see how a shoe would look on their feet.
    The newest feature for Walmart, “Be Your Own Model,” uses algorithms and machine learning technology that was originally used to develop more accurate topographic maps. Shoppers can use it to virtually try on more than 270,000 items across Walmart’s private brands, select items from national brands, such as Champion, Levi’s and Hanes and some sold on its third-party marketplace.
    Customers can choose either option, using their own image or a model who is similar. With the personalized tool, the website uses a scan of a person’s body to provide a more realistic sense of how a fabric drapes, a color looks or where a sleeve or hem hits — without stepping inside of a store.
    Walmart is unveiling the new tool at a time when selling new outfits has gotten tougher. As inflation drives up prices of food, rent and more, consumers have begun to make decisions on where to cut back. The big-box retailer joined a growing list of companies, including Target and Best Buy, which slashed their full-year profit outlook as people buy less discretionary merchandise. Walmart now expects adjusted earnings per share to decline between 9% and 11% for the full year.
    For the discounter, however, budget-consciousness could come with a potential silver lining. The company raised its sales forecast in July because it was getting a lift from shoppers seeking low-priced groceries and essentials even as they buy fewer high-margin items. It is also drawing more customers with annual household incomes of $100,000 or more, the company said on its earnings call in August.

    Denise Incandela, the executive vice president of apparel and private brands at Walmart U.S., said she wants to encourage more of those customers to fill their closets at Walmart, too.

    Walmart’s virtual fitting room tool uses algorithms and machine learning techniques originally used to make topographic maps to show how clothing items would look on a shopper.
    Walmart, virtual try-on, virtual fitting room

    One way to do that is virtual try-on, which makes shopping for clothes more fun and easy, while also taking out some of the guesswork, she said.
    That’s also why Walmart has expanded beyond basics like socks and tees into more fashion-forward merchandise with higher price tags. It has a growing collection of private brands, including Sofia Jeans, developed with actress Sofia Vergara; Free Assembly, a men’s and women’s clothing brand designed by the former chief creative officer at Bonobos; and Love & Sports, an activewear brand created with fashion designer Michelle Smith and SoulCycle instructor Stacey Griffith. Its website carries more well-recognized national brands, too, like fitness footwear and apparel maker Reebok and kidswear brand Justice.
    Walmart has largely launched those elevated brands on its website and then added some of that merchandise to select stores. Its website drives higher average selling prices for apparel items than stores, Incandela said, so the retailer wants to make sure shoppers have fewer reasons to abandon items in their virtual shopping carts — such as struggling to pick a color or debating how a dress might fit.
    So far, she said, Walmart has seen a lift from the first version of its virtual fitting room tool, “Choose My Model.” She declined to say the conversion rate for purchases, but said it is higher for online shoppers who use the tool versus ones who do not.
    “We’re kind of doubling down based on the consumer insights,” she said.
    Now, she said, it’s thinking about where to go next — such as encouraging store shoppers to check out the technology as an alternative to the fitting rooms or making the feature available for men’s and kid’s clothing or eyewear.

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    Railroads say they won't lock out workers as negotiators meet with Labor Secretary Walsh

    The deadline to avert a strike is midnight Friday.
    Railroads have already started diverting freight. A strike could cost the U.S. economy more than $2 billion a day.
    “The railroads have no plans to lock out workers Friday should negotiations not be successfully completed,” the Association of American Railroads told CNBC.

    Negotiators from railroad carriers and unions met in Labor Secretary Marty Walsh’s office Wednesday as the sides tried to negotiate a deal ahead of Friday’s strike deadline.
    The meeting started just after 9 a.m. ET. A spokesperson for the Labor Department said talks were ongoing as of midday. “The parties are negotiating in good faith and have committed to staying at the table today,” the representative said.

    Walsh’s involvement comes as the Biden administration prepares for a work stoppage. A strike, which could affect about 60,000 workers and idle more than 7,000 trains, could cost the U.S. economy more than $2 billion a day. On Wednesday, Amtrak said it would cancel its long-distance train service starting Thursday since it operates nearly all of its route miles on freight railroads.
    The railroads, for their part, “have no plans to lock out workers Friday should negotiations not be successfully completed,” the Association of American Railroads told CNBC.
    Dennis Pierce, the unions’ top negotiator, said members have warned 10% of the workforce could leave if the issues aren’t resolved before the deadline. Sick time policies and quality of life concerns were the biggest sticking points remaining.
    “Our proposal of no paid sick time costs them no money. It’s something they can manage. It doesn’t harm their business model,” said Pierce, who is the president of the Brotherhood of Locomotive Engineers and Trainmen, or BLET. “The railroads need to start treating employees like humans, instead of imposing these policies that are just running people out of the industry.”
    Eight of 12 railroad unions have reached tentative deals with companies as of earlier this week, but two of the biggest unions, BLET and the SMART Transportation Division are still talking to carriers. The two groups represent about half of union railroad workers. Earlier Wednesday, a smaller union, the International Association of Machinists and Aerospace workers voted against a deal.

    The so-called cooling off period, which allowed both sides to continue negotiations, ends at midnight Friday, meaning a strike could happen in the early morning hours. In anticipation of a strike, the railroads have already started diverting freight.
    Labor unions have begun distributing strike information to members in the event a deal can’t be reached by the deadline. A person familiar with the negotiations said the step is “normal procedure to get union workers ready for a strike.”
    “This is not an indication a strike will indeed happen. This is a part of preparation procedures,” said the person, who asked not to be named because they were not authorized to speak publicly about the efforts.
    In an email to members, the National Customs Brokers & Forwarders Association of America listed the timeline of closures. CNBC has compiled a list of just some of the rail changes ahead of the deadline:

    Wednesday: BNSF, which is owned by Berkshire Hathaway, stops moving refrigerated units into inland facilities
    Wednesday: Norfolk Southern stops receiving exports
    Thursday: CN stops receiving exports

    Norfolk Southern and the other railroads have been ramping down freight in anticipation of a strike to move critical hazmat materials, such as chlorine and ethanol. This freight is taking priority over common freight.
    But NS told CNBC it has altered some plans to accommodate more regular cargo.
    “We continue to provide the most flexibility as we can for customers for as long as they can,” a spokesperson for the railroad told CNBC on Wednesday. “We have extended the period of time to accept trucks bringing containers into our land terminals until 5 pm tonight.”
    Originally, NS intended to stop accepting containers Tuesday.
    Recovering from the disruption created by a strike could take weeks, if not months, according to CNBC.
    “Delivery of oversized transformers for transmission and distribution, natural gas turbines, and power generators, as well as renewable technology such as wind tower sections and blades, rely on the U.S. rail systems,” said Marco Poisler, COO of UTC Overseas, warning of “overwhelming delays” for deliveries.
    “Transporting such cargo takes months of planning and rail engineering resources to identify available specialized rail assets with the right axle spread and deck height to achieve railroad clearance,” Poisler said.

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    Ford unveils new gas-powered Mustang, while muscle car rivals go electric

    Ford on Wednesday unveiled the redesigned 2024 Mustang hardtop and convertible with two gas-powered engines.
    The automaker said redesigning the iconic car without any type of electrification is part of its “Mustang family” strategy that includes the all-electric Mustang Mach-E crossover.
    The Mustang could be the last gas-powered muscle car from the Detroit automakers — a narrowing of the segment that seemed far-fetched even a few years ago.

    2024 Ford Mustang
    Source: Ford

    DETROIT — Ford Motor has always considered the Mustang to be in a league of its own. That may soon prove true, with the seventh generation of the famed American pony car.
    The Detroit automaker on Wednesday unveiled the redesigned 2024 Mustang hardtop and convertible with two gas-powered engines. Meanwhile, the Dodge Challenger and Chevrolet Camaro — the car’s largest rivals — are expected to go electric in the coming years.

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    Ford officials say redesigning the iconic car without any type of electrification is part of its “Mustang family” strategy that includes the all-electric Mustang Mach-E crossover that went on sale in late 2020.
    “We know customers do want that internal combustion and some of them want the electric and we offer both in that Mustang family,” said Jim Owens, head of Mustang marketing, during a media briefing.
    A planned hybrid variant was scrapped, according to a report by Automotive News, likely making the Mustang the last gas-powered muscle car from the Detroit automakers — a narrowing of the segment that seemed far-fetched even a few years ago.

    2024 Ford Mustang
    Source: Ford

    Dodge this summer announced its four-door Charger and two-door Challenger muscle cars would drive into the sunset at the end of next year, to be replaced by a new all-electric vehicle. Chevrolet is expected to end production of the gas-powered Chevy Camaro in the coming years as part of General Motors’ plans to exclusively offer EVs by 2035.
    That means gearheads who still thirst for the roar of a V-8 engine in a sporty American coupe will have just one option: the Mustang, which has dominated in sales over the Camaro and Challenger with the current, sixth-generation car.

    Sales of Detroit sports and muscle cars have been declining for years. Mainstream two-door sports coupes such as the Ford Mustang, Dodge Challenger and Chevrolet Camaro fell 32% from 2015 to 2019 — the last year of sales before automakers were stymied by ongoing global supply chain problems, including a shortage of semiconductor chips.
    “Some of our competitors are talking about not being in internal combustion engine sports car business, and what we are so proud of here today is that we are already expanding that family,” Owens said.

    Owens and other Ford officials declined to comment on whether the seventh-generation Mustang would be the last to feature a traditional internal combustion engine.
    The 2024 Mustang, which will be produced at a plant in metropolitan Detroit, will go on sale in the U.S. next summer. Ford did not announce pricing for the vehicle, but the current generation starts at $27,470.

    2024 Mustang

    The exterior of the 2024 Mustang should look familiar to fans of the car. It’s an evolutionary change from the sixth-generation edition, but with characteristics that are a bit more muscular.
    “We’re adding a modern edginess to heritage-inspired design,” said Chris Walter, Ford Mustang design manager.
    The front and rear of the vehicle are redesigned, but the silhouette and overall dimensions of the car are similar to the current-generation Mustang, which was last redesigned for the 2015 model year.

    2024 Ford Mustang
    Source: Ford

    Both the four-cylinder and V-8 engines are updated from the current Mustang. Ford did not release performance specifications, but they’ll likely be better than today’s vehicles. The V-8 GT models will be offered in both manual and automatic transmissions.
    The current 2.3-liter, turbocharged four-cylinder engine delivers 310 horsepower and 350 pounds-foot of torque, while the Mustang GT’s 5.0-liter V-8 produces 450 horsepower and 420 pounds-foot of torque. The top speed ranges from 121 mph to 180 mph, depending on the model.
    The most obvious changes to the seventh-generation Mustang are on the interior of the vehicle: most notably, a 13.2-inch center touchscreen and an accompanying 12.4-inch driver information cluster. The screens can be customized by owners.
    Two other new additions include an available “Electronic Drift Brake” for easier drifting and a “Remote Rev” feature with the ability for owners to rev the car’s engine remotely using a key fob.

    2024 Ford Mustang
    Source: Ford

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    Jim Cramer says these 5 real estate stocks are attractive investment opportunities

    Monday – Friday, 6:00 – 7:00 PM ET

    CNBC’s Jim Cramer on Wednesday offered investors a list of five real estate investment trusts they should consider adding to their portfolios.
    The “Mad Money” host reminded investors that despite the hurdles facing retailers, the companies who act as their landlords have fared better.

    CNBC’s Jim Cramer on Wednesday offered investors a list of five real estate investment trusts they should consider adding to their portfolios.
    “While most retail stocks are horrible right now … the companies that own the best retail real estate are doing just fine,” he said.

    Here is his list of recommendations:

    Simon Property Group
    Federal Realty
    Realty Income
    Tanger Factory Outlet Centers
    Kimco

    Retailers have struggled in recent months as persistent inflation drove up prices for everything from groceries to gas at the pump, leaving consumers with pinched wallets and stores with excess inventory on the shelves.
    At the same time, economists and investors worry that the Federal Reserve’s aggressive campaign to raise interest rates and tamp down inflation could plunge the economy into a recession — which could further hurt consumer spending.
    The “Mad Money” host reminded investors that despite the hurdles facing retailers, the companies who act as their landlords have fared better, even as their stock price has fallen along with struggling retail names.
    “Not many chains are in danger of going under, or even falling behind on their rent payments. We’re not looking at mass store closures, either,” he said.

    “As long as their tenants stay in business, they won’t take much of a hit financially. To me, that looks like an opportunity,” he added.

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    Cramer's lightning round: Terran Orbital is not a buy

    Monday – Friday, 6:00 – 7:00 PM ET

    It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

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    Roblox Corp: “I am not in favor of companies that are losing money.”

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    Marvell Technology Inc: “I’m going to talk about it in tomorrow’s [CNBC Investing Club] meeting. … I’m going to talk very specifically about why I like [CEO] Matt Murphy.”

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    Boeing Co: “I don’t want to go back into Boeing.”

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    Charts suggest oil will bounce short term then head lower, Jim Cramer says

    Monday – Friday, 6:00 – 7:00 PM ET

    Oil’s current run will likely be short-lived as it’s poised to fall later this fall, CNBC’s Jim Cramer said on Wednesday.
    “The charts, as interpreted by Carley Garner, suggest that oil could run to the mid-$90s by early to mid-October, but at that point, she expects it to peak,” the “Mad Money” host said.

    Oil’s current run will likely be short-lived as it’s poised to fall later this fall, CNBC’s Jim Cramer said on Wednesday.
    “The charts, as interpreted by Carley Garner, suggest that oil could run to the mid-$90s by early to mid-October, but at that point, she expects it to peak, possibly leading to a big breakdown through the end of the year,” the “Mad Money” host said.

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    Crude prices have tumbled in recent months after skyrocketing earlier in the year on fears that Russia’s invasion of Ukraine could severely constrain global supply. 
    There have recently been some bullish signs for oil, Cramer acknowledged. OPEC+, an alliance of OPEC and non-OPEC partners, made a small cut to production targets from October. The Biden administration is also weighing the possibility of refilling the Strategic Petroleum Reserve if prices dip below $80 per barrel, according to Bloomberg.
    Yet, oil could very well fall below that price to around $60, he said.
    To explain how Garner’s analysis led to that conclusion, he examined the weekly chart of U.S. West Texas Intermediate crude prices:

    Arrows pointing outwards

    Cramer said that oil could bounce if the $80 per barrel floor of support shown in the chart holds, and Garner wouldn’t be surprised if oil heads to the low to mid-$90s. Oil could even head higher above $100, but that’s unlikely and would be a “last hurrah” for the commodity, according to Garner, he said.

    Cramer added that if oil falls below $80, the next potential floor is at around $60 — and with the Federal Reserve gearing up to raise interest rates next week in its aggressive campaign against inflation, it wouldn’t take much to push oil down even more. 
    “This is not a commodity that thrives during a Fed-mandated recession,” Cramer said.
    For more analysis, watch Cramer’s full explanation in the video below.

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    Jim Cramer says Wall Street should stop the ‘now is the time to get out’ calls

    Monday – Friday, 6:00 – 7:00 PM ET

    CNBC’s Jim Cramer on Wednesday said that investors urging traders to exit the market while they still can are about a year too late.
    “I’m done with all the ‘now is the time to get out’ calls — where the heck were you 10 months ago when it mattered?” he said.

    CNBC’s Jim Cramer on Wednesday said that investors urging traders to exit the market while they still can are about a year too late.
    “I’m done with all the ‘now is the time to get out’ calls — where the heck were you 10 months ago when it mattered? It’s not just the post-Covid kiss of death, it’s multiple kisses, multiple fatalities,” he said.

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    Stocks rose slightly higher on Wednesday as they fought to recover after the major indexes saw the biggest single-day drop in over two years on Tuesday. Investors also are eyeing the Federal Reserve’s meeting next week, where it’s expected to raise interest rates by 75 or 100 basis points. A basis point is 0.01 percentage point.
    While persistent inflation and the Fed’s battle against it could further wreck the market, the declines are nothing new, the “Mad Money” host said.
    According to Cramer, while there are industries that have seen huge declines this year, such as tech, there are also lower-profile bear markets that show the market declines have been far-reaching. 
    Auto companies have seen losses this year, as have retail stocks, he pointed out. Companies with business in home renovation have also struggled, while telecommunications and entertainment stocks have also cratered, he added.
    “We’re already nearly a year into this decline. I just wish the so-called professionals would act like it,” Cramer said.

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    Patagonia founder just donated the entire company, worth $3 billion, to fight climate change

    Patagonia founder Yvon Chouinard, his spouse and two adult children are giving away their ownership in the apparel maker he started some 50 years ago.
    The company’s non-voting stock, worth close to $3 billion, will be owned by a collective that will use all profits that aren’t reinvested into the business to fight climate change.
    The company expects to contribute about $100 million a year, depending on the health of the business.

    Yvon Chouinard, founder and owner of Patagonia.
    Courtesy of Jeff Johnson and Patagonia

    Patagonia founder Yvon Chouinard, his spouse and two adult children are giving away their ownership in the apparel maker he started some 50 years ago, dedicating all profits from the company to projects and organizations that will protect wild land and biodiversity and fight the climate crisis.
    The company is worth about $3 billion, according to the New York Times.

    In a letter about the decision, published on the Patagonia website on Wednesday, Choiunard wrote of “reimagining capitalism,” and said:

    “While we’re doing our best to address the environmental crisis, it’s not enough. We needed to find a way to put more money into fighting the crisis while keeping the company’s values intact. One option was to sell Patagonia and donate all the money. But we couldn’t be sure a new owner would maintain our values or keep our team of people around the world employed.
    Another path was to take the company public. What a disaster that would have been. Even public companies with good intentions are under too much pressure to create short-term gain at the expense of long-term vitality and responsibility.
    Truth be told, there were no good options available. So, we created our own.”

    The privately held company’s stock will now be owned by a climate-focused trust and group of nonprofit organizations, called the Patagonia Purpose Trust and the Holdfast Collective respectively, the company said in a statement, noting “every dollar that is not reinvested back into Patagonia will be distributed as dividends to protect the planet.”
    The trust will get all the voting stock, which is 2% of the total, and will use it to create a “more permanent legal structure to enshrine Patagonia’s purpose and values.” It will be overseen by members of the family and close advisors.
    The Holdfast Collective owns all the non-voting stock of Patagonia, which amounts to 98%.
    Patagonia expects to generate and donate about $100 million annually depending on the health of the business. The company now sells new and used outdoor apparel, gear for outdoor activities like camping, fishing and climbing, and food and beverages made from sustainable sources.

    As a certified B-Corp and California Benefit Corporation, Patagonia was already donating one percent of its sales each year to grassroots activists, and it intends to keep doing so. Fewer than 6,000 companies around the world are certified as B-Corp businesses. They have to meet strict environmental, social and governance standards and benchmarks set by B Labs to gain certification.
    Ryan Gellert will continue to serve as Patagonia’s CEO, and the Chouinard family will remain on Patagonia’s board following the apparel maker’s expanded philanthropic strategy. After informing its employees on Wednesday about this move, the company updated its website to state that “Earth is now our only shareholder.”

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