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Even as the cost of living surges and more Americans say they are stretched too thin, they’re also spending more on impulse purchases.
More than half of all purchases are spontaneous, according to one recent report.
Social media doesn’t help.

Pandemic shopping changes boosted impulse buys

To be sure, the pandemic has changed the way people spend money. 

“Consumers abandoned ingrained shopping habits, hurtling ecommerce into hyperdrive,” according to an analysis by McKinsey & Company.
Americans are spending more on clothing, travel and experiences, the report also said, and are now conditioned “to believe they can get whatever they want, whenever they want.”
But that also makes shoppers more susceptible to impulse buying.
Another recent report by online lender SoFi found that 56% of consumers said that more than half of their online purchases are spontaneous, driven largely by changing habits post-Covid and the rise of buy now, pay later, which has exploded in popularity along with the general surge in online shopping.

BNPL, social media and drunk shopping are budget busters

Several studies show that BNPL has played a role in encouraging consumers to spend more than they can afford on impulse purchases.  
According to one report by LendingTree, nearly half of shoppers said they wouldn’t have made the same purchase if they didn’t have the option to finance. 
Sites like TikTok, Instagram and Facebook are also fueling impulse buying.

fast online shopping
Jelena Lalic | Istock | Getty Images

Roughly half of social media users have made an impulse purchase driven by something they saw on their feed, Bankrate recently found. In SoFi’s survey, as much as three-quarters of consumers said they bought something they saw on social media.
It’s not just the allure of celebrities like the Kardashians anymore: Seeing influencers and even friends, posting in restaurants, on vacation or shopping creates a “Keeping up with the Joneses” mentality that is hard to resist.
Nearly 40% of young adults said they spend more of their money on experiences than necessities like paying bills, in part because they want to share it on social media, according to a separate report by Credit Karma.

Two friends with cotton candy taking photos against the ferris wheel
Martin-dm | E+ | Getty Images

The surge in spending through social media platforms has also led to an increase in shopping while not completely sober. 
With more consumers online around the clock, over half of adults, or 53%, admit they have shopped while intoxicated, SoFi said.
The most-popular post-cocktail purchase: clothing, based on social media posts about drunk online shopping. Amazon was by far the most-mentioned retailer.

Living with regret

Buyer’s remorse is not new. However, under these conditions, it’s more pervasive than ever.  
Of those who’ve used installment payment plans, 22% regret their decision, according to a survey by DebtHammer.org.
Based on Bankrate’s report, 64% of shoppers said they have regretted at least one purchase they made because of social media.
And when it comes to drunk shopping, a full 65% of respondents said they forgot ordering an item until it arrived on the doorstep, according to SoFi.
Meanwhile, total credit card debt has creeped back to $890 billion, just shy of 2019′s record high. Allen Amadin, president and CEO of American Consumer Credit Counseling, offers these tips to curb spending and pay down debt.
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Detroit automakers will need to consider loyal fans of their iconic muscle cars as they transition to electric vehicles.
EVs can go from 0 to 60 mph in jaw-dropping times, but don’t offer the same driving dynamics as traditional cars.
The transition comes as sales of Detroit’s traditional performance cars shrink.

Dodge CEO Tim Kuniskis unveils the Charger Daytona SRT electric muscle car concept on Aug. 17, 2022 in Pontiac, Mich.  
Michael Wayland / CNBC

PONTIAC, Mich. – At an event featuring headbanging ’80s music and $2 beers this week, Dodge unveiled a concept for its first electric muscle car that included an exhaust system and multi-speed transmission.
The features aren’t needed for an electric vehicle − but could be key for winning over die-hard fans of performance vehicles.

“Sound is a critical component,” Dodge CEO Tim Kuniskis said. “And the shifting is critical … we went round and round for the longest time. It does not make the car faster … but it’s way more engaging and way more fun to drive.”
As Detroit’s legacy automakers race to work to transition to electric vehicles, they’re also trying to win over the long-time auto fans who love the sound of rumbling V-8 engines and the feel of shifting gears that gives them a visceral connection with cars.  
The sales heydays of muscle cars are decades in the past, but the vehicles have become cultural touchstones that create massive awareness for brands and their customers remain loyal ambassadors. That hype can create a halo effect for other models that translates into sales.

In recent years, Tesla has created a cult following for its EVs through its sleek, tech-savvy vehicles and humming motors. But Detroit’s Dodge, Chevrolet and Ford brands have loyalty dating back family generations, and the legacy automakers are still figuring out how to bring those enthusiasts along as they electrify their fleets.

Dodge shows its hand

Dodge this week became the first of Detroit’s traditional performance brands to announce its plans on how to retain its muscle car customers. At the event in Pontiac, Michigan, the company showed off its Charger Daytona SRT concept ahead of its first production electric muscle car in 2024.

Kuniskis called it one that regulators and environmentalists who support EVs “don’t want you to have” because of its performance, modernized retro styling and new patent-pending technologies.
“It was important to bring back something visually that they were going to look at and go holy s—, they did this right!” Kuniskis told CNBC this week.
Some design aspects of the concept car, including an exhaust system and multi-speed transmission, are expected to negatively impact the electric range of the vehicle – but Kuniskis said that’s not something Dodge cares about. He said the point is to make the car feel and drive like a traditional muscle car.

Josh and Darla Welton, of Detroit, stand by a muscle car on display at a Dodge event on Aug. 17, 2022 in Pontiac, Mich.
Michael Wayland / CNBC

That’s critical for auto fans like Josh and Darla Welton, who own several vehicles, including the infamous Dodge Challenger SRT Demon,  which some condemned when it was produced because of its power as a street-legal drag racing car.
“To keep the enthusiast, you’re going to have to have the driver engaged as opposed to having some self-driving, autonomous car,” said Josh Welton, 44, who was wearing limited-edition “SRT Demon” sneakers that were made in partnership with Dodge and Warren Lotas. “They want to be involved with what’s going on.”
Pete Seguin, a 62-year-old auto technician from Ottawa, Ontario, was also at the event showing his support for Dodge’s SRT Hellcat with an “SRT” and a Hellcat logo tattooed on his right forearm.

Pete Seguin (L), of Ottawa, Ontario, shows off his “SRT” Hellcat tattoo standing with brother Robert Seguin, of Gatineau, Quebec, at a Dodge event Aug. 17, 2022 in Pontiac, Mich.
Michael Wayland / CNBC

In-transition

Ford Motor and General Motors have yet to disclose plans for their respective performance brands and vehicles.
GM has confirmed it plans to produce hybrid and all-electric models of its famed Chevrolet Corvette sports car in the years to come, but Detroit’s largest automaker has been mum on the future of the Chevy Camaro, which has experienced dwindling sales since a redesign of the vehicle in 2016. Performance enthusiast websites such as Muscle Cars & Trucks have said the company is expected to end production of the Camaro in 2024.

The Chevrolet Camaro ZL1 starts at about $62,000 and is powered by a 650-horsepower V8 engine, a considerable upgrade over the roughly $26,000 base model.
Source: General Motors

Ford is expected to reveal the next generation of its iconic Mustang car next month, but it has not given any notion that the car will be electric as part of its strategy to electrify its “most iconic nameplates.”
Since 2020, Ford has offered an all-electric crossover called the Mustang Mach-E, which is the only production vehicle other than the sports car to wear the company’s prancing horse logo.
“Dodge really played to its own strengths with its concept,” said Paul Waatti, manager of industry analysis at research firm AutoPacific. “It will be interesting to see what Ford and GM have up their sleeves for this as well. I think Dodge has laid out a pretty good roadmap for these types of cars.”

People visit Ford’s all-electric SUV Mustang Mach-E at the 2019 Los Angeles Auto Show in Los Angeles, the United States, Nov. 22, 2019.
Xinhua via Getty Images

He said a big challenge for automakers in the shift from today’s muscle cars with rumbling V-8s, and creating the same type of emotional connection,.
Representatives for GM and Ford declined to discuss plans beyond what has been announced.

Shrinking market

Sales of Detroit’s mainstream performance cars are falling.
The current cars enjoyed popularity after the Great Recession, peaking at more than 394,000 vehicles in 2015, according to industry researcher Edmunds. But sales have declined since, including a nearly 50% drop for two-door coupes such as the Challenger, Camaro and Mustang.

Many of the vehicles have evolved to offer smaller engines with less power, but they can still carry a stigma as noisy, gas-guzzling cars. There’s also increased competition from automakers outside Detroit, including EV makers; a move by consumers away from cars to more practical crossovers; and a potential change in performance culture.
“Performance has definitely felt like it’s taken a backseat in recent times, in this move to electric cars, which have a different type of performance,” said Jessica Caldwell, executive director of insights at Edmunds.
Combined sales of the Ford Mustang, Chevrolet Camaro and Corvette, and Dodge Charger and Challenger were down about 35% last year compared with 2015. They were down by 25% from then in 2019 – the last year of pre-pandemic automaker sales before they were impacted by ongoing global supply chain problems, including a shortage of semiconductor chips.

To keep attracting buyers, Detroit automakers will need to “find a niche and a brand image” Caldwell said.
Ford’s Mustang Mach-E, for example, has done well for the automaker despite taking the form of a larger crossover rather than the sleek muscle car of its gas-powered predecessor. And Dodge’s plans, at least for now, appear to have satisfied at least some of its most loyal fanbase with the Charger Daytona SRT concept.
“When it came rolling out, and then you got to see all the lines in the body and design, I got chills,” said Darla Welton, 43.
As a lifelong Detroiter whose family worked in the auto industry, she noted the excitement of getting to witness the transition of the muscle cars like the Demon to EVs.
“I can’t wait to get behind the wheel,” she said.

The Charger Daytona SRT electric muscle car concept was unveiled on Aug. 17, 2022 in Pontiac, Mich.
Michael Wayland / CNBC

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Amazon’s “The Rings of Power” and HBO’s “House of the Dragon” serve very different purposes for their respective studios.
For Warner Bros. Discovery’s HBO, the second entrant in its Game of Thrones franchise has a lot to prove.
Amazon, on the other hand, has less to lose, analysts say, as it forges its own unique path in the streaming industry.

Promos for HBO MAX Game of Thrones: House of the Dragon (L), and Prime Video Lord of the Rings: The Rings of Power.
HBO Max | Amazon

As summer comes to an end, two expensive fantasy series filled with sorcery, sword fights and fantastical beasts will premiere on rival streaming services.
While it may seem like Amazon Prime Video’s “The Rings of Power” and Warner Bros. Discovery’s “House of the Dragon” should be dueling franchises, as they begin within a couple weeks of each other, the two series serve very different purposes for their respective studios.

The stakes may be higher for “House of the Dragon,” which will go first. It starts Sunday on HBO and streaming service HBO Max, arriving as newly minted CEO David Zaslav is looking for fat to trim.
Cost-cutting measures have become status quo at the recently merged company including layoffs and content eliminations from HBO Max. As Warner Bros. Discovery seeks to save money, it’s also looking to consolidate its streaming services, something that will be expensive and time-consuming.
“House of the Dragon” tells the story of the Targaryen civil war that took place about 200 years before the events portrayed in “Game of Thrones.” It is based on George R.R. Martin’s novel “Fire and Blood.” Unlike Martin’s other books in the “Song of Ice and Fire” series, this one features an omniscient narrator who documents the histories based on collected accounts of events. In some cases, these stories contradict each other and there are multiple versions of events.
Amazon Prime Video’s “The Rings of Power” arrives Sept. 2. The series is based on material in the appendices of J.R.R. Tolkien’s monumental “The Lord of the Rings” novels. “The Rings of Power” focuses on the major events of Middle-earth’s second age, a time of peace that is disrupted by the rise of the Dark Lord Sauron. It takes place thousands of years before the start of “The Hobbit” and “The Lord of the Rings,” which filmmaker Peter Jackson turned into separate blockbuster trilogies earlier this century.
While both series have mature themes, Martin’s work is more targeted at adults, as it portrays visceral acts of violence, nudity and sexual assault. While there are large battles in “The Lord of the Rings,” previous iterations have been more suitable for younger audiences.

Both series will drop new episodes weekly, a strategy that could turn them into must-watch event TV and keep audiences talking and speculating about what’s to come.

You win, or you die

For Warner Bros. Discovery, the second entrant in its Game of Thrones franchise has a lot to prove, and to live up to. The final season of “Game of Thrones” left a sour taste in many fans’ mouths, as showrunners wrote beyond the events in the material created by author Martin, who has yet to finish the story in his books.
“There was this, this kind of cloud that descended on the original [‘Game of Thrones,’]” said Robert Thompson, a professor at Syracuse University and a pop culture expert. “Not everybody despised it, but certainly there was a lot of the opposite of love. To some extent as we go into all of these, you know, next chapters in the ‘Game of Thrones’ television world, there’s already that sense of a kind of compromise.”
At the time, HBO was owned by AT&T. Now, Discovery has merged with Warner Bros. and new owners have a new streaming strategy. As the company quietly pulls shows and films from HBO Max, and has shelved already made projects, analysts and investors see an uncertain future.

HBO / AT&T

If “House of the Dragon,” which cost a reported $15 million to $20 million per episode, doesn’t live up to expectations, the next phase of the Game of Thrones franchise could fizzle out quickly.
“I feel like they have more to prove in the market,” said Dan Rayburn, a streaming and media analyst. “Amazon, they’re not trying to impress investors and when they are, it’s around commerce.”
Of course, the opposite is also true. If the “Game of Thrones” prequel is a critical hit, Warner Bros. Discovery could see this fledgling franchise become a much more substantial part of the pop culture zeitgeist.
“House of the Dragon” holds a 78% “Fresh” rating on Rotten Tomatoes from 177 reviews. For comparison, the first season of “Game of Thrones” released in 2011 had a 90% “Fresh” rating. In fact, every season except the final season had a score above 90%. Season eight generated a 55% rating.
No rating has been assigned to “The Rings of Power,” yet. The three original “Lord of the Rings” films each scored between 91% and 95%, while the “Hobbit” trilogy generated scores between 59% and 74% from critics.

The road goes ever on

Unlike traditional standalone streaming services, like HBO Max, Netflix, Disney+ or Peacock, Amazon is less beholden than subscriber metrics. The movies, television series and documentaries it offers are a supplemental add-on to its e-commerce site and its cloud computing business.
“The longer you spend watching something on Amazon, the better chance [you’re] going to buy shampoo, toothpaste, a lawn mower, you know, and that’s ultimately their business,” said Paul Hardart, director of the entertainment, media and technology program at NYU Stern School of Business. “And so they’ve got several ways to make money off of you.”
Amazon’s strategy in recent years has been to focus on content that has a passionate built-in audience and will add value to its platform. In addition to snatching up the rights to Tolkien’s “Lord of the Rings” supplemental material in 2017 for an estimated $250 million, the company recently bought MGM Studios for $8.5 billion, giving it access to James Bond, the Rocky franchise and “The Silence of the Lambs.” 
It also partnered with Dungeons and Dragons media group Critical Role to create an animated series based on one of the group’s campaigns, and has created its own series based on “A League of Their Own,” one based on Lee Child’s Jack Reacher novels and another on Tom Clancy’s character Jack Ryan.

Amazon Studios shared its first image of its upcoming untitled “Lord of the Rings” series, due on its streaming service Sept. 2, 2022.
Amazon Studios

Amazon has a five-season plan for “The Rings of Power,” a plan that will swallow more than $1 billion in production costs and could take nearly a decade to complete. With this investment, it is unlikely that the company will deviate from the series, even if viewership is smaller-than-expected.
Of course, analysts and investors will likely never get viewership data from Amazon, said Rayburn. The company has always been quiet about its streaming numbers, doling out occasional figures for big films or series, but has not translated those numbers into revenue figures.
“We’re never going to know if the Amazon series is successful,” he said. “They will never come out and give us metrics that are tied to revenue.”
Warner Bros. Discovery, on the other hand, may also keep revenue data quiet, but may be more willing to concede viewership data, he said. The company will also “have no choice” but to cancel the show if it doesn’t perform well, “especially with the [recent] pullback of content spend,” Rayburn said.
Of course, the fans will be the final metric. Even though fans criticized the final season of “Game of Thrones,” the series as a whole is still beloved and its ratings were consistently HBO’s highest during the time of its run.
“The Rings of Power” also has a huge baked-in audience. The six theatrical films tied to Tolkien’s novels generated more than $5.8 billion at the global box office, and Amazon – which made its name as a bookseller, after all – saw a resurgence in interest in the author’s texts earlier this year. Even “The Silmarillion,” Tolkien’s esoteric, posthumously published mythos of Middle-earth, reached Amazon’s top chart for the first time ever, signaling a surge in interest ahead of the series.
If audiences rally behind these shows, whether critics like them or not, then both companies will look for ways to expand their respective universes and provide more content, and products, in the future.
It could also be good news for other streaming services dabbling in fantasy. Disney+ will premiere its “Willow” series, a sequel to the 1988 sword-and-sorcery Ron Howard movie, at the end of November.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. Peacock and Rotten Tomatoes is owned by NBCUniversal.

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China issued its first drought emergency this year as scorching temperatures dry up areas of the Yangtze River and put pressure on the power grid while the country battles a record-breaking heatwave.
Authorities issued the national yellow alert late on Thursday after China’s central and southern provinces endured weeks of extreme heat, with temperatures in dozens of cities surpassing 40 degrees Celsius, or 104 degrees Fahrenheit.
The heatwave has disrupted crop growth, threatened livestock and prompted some industries to shut down to conserve power for homes.

The Jialing River bed at the confluence with the Yangtze River is exposed due to drought on August 18, 2022 in Chongqing, China.
Vcg | Getty Images

China issued its first drought emergency this year as scorching temperatures dry up areas of the Yangtze River and put pressure on the power grid while the country battles the record-breaking heatwave.
Authorities issued the national yellow alert late on Thursday after China’s central and southern provinces endured weeks of extreme heat, with temperatures in dozens of cities surpassing 40 degrees Celsius, or 104 degrees Fahrenheit.

The heatwave has disrupted crop growth, threatened livestock and prompted some industries to shut down to conserve power for homes.

China’s Sichuan province, which has 94 million people, ordered all factories this week to shut down for six days in effort to ease power shortages in the region. The shutdowns came after reservoir levels declined and demand for air conditioning spiked amid the heat.
Rainfall in the Yangtze River basin area also declined by roughly 45% compared to the average in recent years, according to data from the Ministry of Water Resources. As many as 66 rivers across 34 counties in the southwestern region of Chongqing have dried up, according to the state broadcaster CCTV.

A sprinkler irrigates a corn field to mitigate the impact of drought brought by high temperatures, in Xiliangshi village of Boai county in Jiaozuo, Henan province, China June 20, 2022. 
China Daily | Reuters

The district of Beibei in southwest China experienced record temperatures of 45 degrees Celsius, or 113 Fahrenheit, on Thursday, the National Meteorological Center said.
Chinese officials this week unveiled measures to reduce the impact of the drought, including cloud seeding to prompt rainfall, $44 million in disaster relief for the hardest-hit communities and shutdowns of some energy-intensive sectors.

Dan Wang, the chief economist of Hang Seng Bank China, told CNBC’s “Squawk Box Asia” on Thursday that the heat could have a significant impact on China’s economy. Wang said the country’s steel, chemical and fertilizer industries are already experiencing a slowdown in production.
“It will affect those big energy-intensive industries and it will have [a] knock-on effect throughout the economy and even to the global supply chain,” Wang said.
In July, extreme temperatures caused direct economic losses of 2.73 billion yuan, or $400 million, which impacted 5.5 million people, according to data released on Thursday from China’s emergency ministry.
— CNBC’s Sumathi Bala contributed reporting

A section of a parched river bed is seen along the Yangtze River in Jiujiang in China’s central Jiangxi province on August 19, 2022.
STR | AFP | Getty Images

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Ticket sites are seeing strong demand for Serena Williams’ final tournament before retirement.
The first three nights of the U.S. Open are sold out, according to the U.S. Tennis Association.
Prices for this year’s Women’s Final have surged in recent days, with the average price jumping from $768 to $1,289, an increase of nearly 68%.

Serena Williams reacts during a post-match ceremony after losing to Belinda Bencic of Switzerland on Day 5 of the National Bank Open, part of the Hologic WTA Tour, at Sobeys Stadium on August 10, 2022 in Toronto, Ontario.
Robert Prange | Getty Images

As Serena Williams prepares for her last U.S. Open before retirement, tickets to see the tennis legend play are in high demand.
The U.S. Tennis Association sold over 16,500 tickets alone on Aug. 9, when the tennis champion announced her upcoming retirement, according to the organization — more tickets sold than the previous seven days combined. The tournament kicks off Monday, Aug. 29.

“We are now basically sold out for Monday (Opening night), Tuesday and Wednesday nights,” a USTA spokesperson told CNBC.
The USTA would not disclose financial projections for the famed Queens tennis tournament, and Williams’ announcement came so close to the start of the tournament that it’s unlikely her retirement would have brought in additional sponsorships, which are usually set well in advance.
Secondary ticket reseller site Stubhub said daily average sales in dollars have more than doubled and the number of tickets sold per day has more than tripled. The popular ticket site said it has seen a 40% jump in sales since Williams’ announcement.
“U.S. Open demand continues to pick up as we approach one week out from the start of first-round action. We encourage fans to get tickets now if they want to go, since legends like Rafael Nadal or Serena Williams advancing in play can have a big effect on demand,” said Adam Budelli, a spokesperson for StubHub.

On ticketing website TicketIQ, US Open prices are up 34% since Williams’ retirement announcement. Prices for this year’s Women’s Final have also surged in recent days, with the average price jumping as high as $1,289.

“The $1,289 list price is also the most expensive Women’s Final we’ve ever tracked, 37% higher than the previous most expensive, the 2019 Final, which was also the last time Serena made the U.S. Open Final,” TicketIQ said.
“Despite odds makers putting Serena as just the 13th most likely woman to win the 2022 US Open, ticket sellers are pricing the finals as if she’ll be there,” TicketIQ CEO Jesse Lawrence told CNBC.
Williams has won the U.S. Open six times in her career, the most recent win coming in 2014. She’s coming off a tough loss to Britain’s Emma Raducanu in the opening round of the Western & Southern Open, a Women’s Tennis Association event in Mason, Ohio.
“I don’t know if I will be ready to win New York. But I’m going to try,” Williams wrote about the tournament in the Vogue magazine piece announcing her retirement.

The tennis icon turns 41 next month and says she’s ready to focus on growing her family after decades of focusing on tennis. She is married to Reddit founder Alexis Ohanian and has a 5-year-old daughter, Olympia.
During her prolific career, Williams has won 23 grand slam titles, the second most of all time, behind Margaret Cour, and over $94 million in career winnings, twice as much as any other female athlete. She’s also been instrumental in bringing African Americans and girls into the sport.
Forbes estimates the tennis star’s net worth at around $260 million.
“I started playing tennis with the goal of winning the U.S. Open. I didn’t think past that. And then I just kept winning,” she wrote in Vogue.

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As the severity, intensity and frequency of climate disasters increase, preparation is becoming more crucial than ever to protect lives, as well as infrastructure, businesses and local economies. One high-tech forecasting company is now stepping up, offering hyper-detailed weather prediction and pre-storm strategy plans, right down to a city block.
 Boston-based Tomorrow.io already boasts clients like Delta, Ford, JetBlue, Meta, Raytheon, Uber, United Airlines, and the U.S. Air Force. Rainfall, snowfall, fire danger and air quality prediction are all part of the firm’s capabilities.

When the remnants of hurricane Ida blew into New Jersey almost a year ago, the state was woefully unprepared. It wasn’t a hurricane anymore, so the preparation was minimal, but the deluge was incredible.
“It rained four inches in one hour during Ida, and we had a total of six and a half inches of rain, in one storm event, which is really unprecedented,” said Caleb Stratton, chief resilience officer for the city of Hoboken, New Jersey.
Hoboken, just across the Hudson River from Manhattan, is only two square miles but home to more than 62,000 people. It is increasingly prone to flooding, so the city had been building protection in the form of parks that act as massive drains.
One of the parks sits atop a massive cistern that can hold 200,000 gallons of water and is managed remotely, so water can be held or released when necessary.
But to optimize the system, city officials need to know what’s coming. So just after Ida, they began working with Tomorrow.io.

“They are able to provide insights on when a storm event’s going to occur — at what intensity, for how long — and they can do really block by block forecasts,” said Stratton.
The firm works with its clients well before they start forecasting to show them specifically how future weather will affect everything from operations to supply chains to staffing.
 “We will take an airline’s operating protocol, specifically upload it into our system, and then we have our own proprietary insights dashboard that tells them exactly when it’s going to happen,” said chief marketing officer Dan Slagen. “So we’ll tell an airline over the course of the week, these flights are going to be at risk of weather, and if you need to de-ice your planes, this is the time to do it, to avoid delays or any safety impacts.”
Next up, the firm is sending its own satellites into space, which will send back data far more frequently than government weather satellites.

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Walmart on Friday told employees that it will expand abortion and related travel coverage, according to an internal memo.
Effective immediately, Walmart’s health-care plans will cover abortion “when there is a health risk to the mother, rape or incest, ectopic pregnancy, miscarriage or lack of fetal viability.”
Walmart is the nation’s largest private employer with about 1.6 million employees.

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

Walmart on Friday told employees that it will expand abortion and related travel coverage, according to an internal memo. The change comes about two months after the Supreme Court struck down the federal right to access the procedure.
Effective immediately, Walmart’s health-care plans will cover abortion “when there is a health risk to the mother, rape or incest, ectopic pregnancy, miscarriage or lack of fetal viability,” according to the memo to employees, which was reviewed by CNBC.

Employees and their family members who are insured through Walmart will also have travel costs covered, if they cannot access a legal abortion within 100 miles of their location, according to the email, which was sent by Walmart’s chief people officer, Donna Morris.
Walmart is the nation’s largest private employer with about 1.6 million employees and is headquartered in Arkansas, where strict abortion limits have already gone into effect. The company’s health-care expansion comes months after Target, Apple and others broadened or reaffirmed abortion coverage. Still, Walmart’s policy decision is symbolic: The retailer’s more than 4,700 stores are located in small towns and larger cities alike, with about 90% of Americans living within 10 miles of a location.
Last month, the company’s CEO, Doug McMillon, sent an employee-wide email saying that Walmart was “working thoughtfully and diligently to figure out the best path forward” after the Supreme Court decision. Walmart at the time didn’t say what changes the company was considering.
The retailer previously offered more limited abortion coverage. According to the company’s employee handbook, charges for “procedures, services, drugs and supplies related to abortions or termination of pregnancy are not covered, except when the health of the mother would be in danger if the fetus were carried to term, the fetus could not survive the birthing process, or death would be imminent after birth.”
Morris included the abortion updates in a memo previewing Walmart’s open enrollment period, a time when employees sign up for benefits. She said the company prepared for the season and made changes after “listening to our associates about what’s important to them.”

“We strive to provide quality, competitive and accessible health coverage that supports you and your families,” she said in the memo.
The company is also launching a center for fertility services and increasing financial support for adoptions from $5,000 to $20,000, according to the memo.
Walmart’s home state of Arkansas is one of several with a so-called trigger law designed to limit abortion access immediately upon the overturning of Roe v. Wade. The state bans all abortions except those permitted to save the life of a mother.
The company did not immediately comment on the coverage expansion Friday.

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Target (TGT) missed on earnings. Lowe’s (LOW) provided mixed results. Home Depot (HD) fared better. Walmart (WMT) beat estimates but warned its customers were focusing more on lower prices. Results were all over the map for this week of retail earnings. But dig a little deeper, and there were some very clear themes — regardless of results — that showed us how the consumer is faring during this period of high inflation. They also provide a window into our holdings with exposure to the everyday consumer, namely Costco (COST), Amazon (AMZN) and Apple (AAPL). Here are some common threads before we get the bottom line on our Club holdings. Inventory glut Covid pandemic shortages eventually became post-pandemic oversupply, which is why the retail industry has been suffering from what Jim Cramer has called an inventory glut recession. During the pandemic, there was a lot of demand for retail goods. Giants like Walmart and Target overestimated the consumer demand and ended up ordering in excess. Fast forward to today, both retailers have been struggling to sell the surplus and are now sitting on stale inventory. This excess of goods has ultimately put pressure on their profits as they have been forced to mark down goods in order to clear out some of that inventory. In late July , prior to reporting its fiscal second quarter earnings this week, Walmart cut its quarterly profit expectations and full-year guidance. Similarly, Target issued two warnings — one in May and another in June — preparing investors that its then-upcoming quarterly results would take a hit. While Walmart reported 8.4% year-over-year growth in sales to $152.86 billion, customers focused on lower-margin product purchases — which in part, weighed on profitability. Though earnings-per-share did beat revised estimates. Walmart CEO Doug McMillon told CNBC on Tuesday, “People are really price-focused now, regardless of income level.” New customers and more frequent trips from households with annual incomes of $100,000 or more helped boost sales. Target met analyst revenue expectations of $26 billion but reported much lower-than-expected Q2 earnings, a hard miss on its bottom line. On Target’s post-earnings call Wednesday, Chief Growth Officer Christina Hennington said customers are feeling the bite of inflation, stretching their budgets by taking advantage of promotions and consolidating store trips. She said Target shoppers still have spending power, but “confidence in their personal finances continues to wane.” Both retailers were also compelled to cancel billions worth in orders and pricing down their inventory, so they’re better positioned for fresh inventory as the holidays roll around. Both of them also signaled that customers are mindful of inflation and are adjusting their spending habits accordingly. Consumers are cautious but are still spending This week of retail earnings revealed that consumers are redirecting their spending patterns, but overall demand is resilient. That was seen in Walmart’s commentary and at Home Depot and Lowe’s. In Walmart’s earnings call, in addition to talking about those mid- to higher-income customers looking for value, management mentioned that shoppers are buying less high-margin discretionary items, like electronics, but they’re spending more on lower-margin like groceries. That reflects a consumer pressured by inflation but still able to spend in a cost-effective way. Home Depot beat analyst expectations with its second quarter results, delivering its highest quarterly sales and earnings in the company’s history. The home improvement giant reported consumers are spending on renovations, even in a weak housing market. On the post-earnings call, management said customers are not trading down to less expensive items despite inflation. The company saw growth from both professional and do-it-yourself (DIY) projects. Lowe’s provided mixed quarterly results in its second quarter. It appeared to come in weaker than rival Home Depot since it markets more to DIY consumers who are likely monitoring large purchases. For the quarter, DIY customer sales were impacted in part by lower demand in some discretionary categories, offset by double digit growth among pro contractors. While the mix at Lowe’s is different, CEO Marvin Ellison told CNBC : “Rather than the DIY consumer trading down like you hear from some retailers, in many cases we were seeing the opposite. … The customer’s actually trading up to innovation and trading up for new.” Margin pressure Many retailers have been experiencing margin pressures from not only inventory oversupply, but also from elevated inflation across the board. They’re dealing with higher labor costs and input costs — and how much of those they can pass along to consumers in the form of price hikes on their products, which goes to margins. As mentioned earlier, Walmart and Target mischaracterized the level and mix of inventory they needed and now they’re stuck with stuff they’re forced to mark down. We see this mismanagement as unacceptable because these retailers have the data that could have better prepared them. Target took an almost 90% hit to earnings-per-share from a year ago, resulting from price markdowns on their excess inventory, which impacted their margins. In its second quarter earnings statement, Walmart CEO Doug McMillon said the company’s steps to improve inventory levels and put pressure on its profit margins for the second quarter. However, margin pain for retailers is often times a boon to consumers, who browse the sale racks for bargains, especially in these tough times. While not nearly as bad as Target’s year-over-year EPS decline, Walmart’s Q2 profit of $1.77 per share was a penny shy of the year-ago period. Retail sales report At a higher level view, the government reported retail sales for July this week. The $682.8 billion in total sales last month was unchanged from June’s revised number. Estimates had called for a 0.1% increase. It’s worth noting these numbers are adjusted seasonally — but not for inflation — and came during a month when the consumer price index also was flat. Retail sales in July, excluding autos, rose 0.4%, which was much higher than expectations. Month-over-month auto sales fell 3.4%. Overall, this signals that consumers have been holding up in the face of inflationary pressures. They’re still looking for value in the retail space — perhaps, a reason why big-ticket items like cars and building materials were down for the month — but they’re are not shying away from spending. Bottom line What does all this mean for our Club holdings that depend on the consumer? Overall, we see a positive retail readthrough for Costco, Amazon and Apple. Costco, which we see as a better alternative to Walmart, is holding up in a slowing economy because of its strong inventory management and loyal membership program. We don’t get Costco’s latest earnings until next month. But the company reports sales figures on a monthly basis and they have been solid. Consumers are price-sensitive and looking for deals. One way they can do that is by buying in bulk at Costco. Costco is in a better position than Walmart and Target because by selling bulk, it can offer lower per unit pricing than competitors. Costco has also proven to manage its inventory much better than Walmart and Target meaning that it doesn’t have to mark down selling prices at the expense of profit margins. Investors like that because if they have faith in management, then they will pay a higher multiple for the stock due to the increased confidence they have in future earnings potential. Amazon has been holding up as consumers continue to shift to online shopping. Like Costco, it has a membership model through Prime. But unlike Costco, Prime offers much more than just great pricing on retail goods such as streaming (think the bundle). Walmart is trying to make its Prime-like offering Walmart+ more attractive by teaming up with Paramount+ to offer a streaming value-add. The other thing Amazon has going for it as we look ahead is that while the company did overbuild in recent quarters, profitability is likely set to improve from here as the company grows into that excess capacity. At the same time, it’s also reducing the size of its workforce and realizing the benefits of the recent pullback in energy prices. We also expect resilient results from Apple to continue as their anticipated new iPhone release comes this fall. Apple operates retails stores and also sells things direct to consumers online. Apple also offers high-margin subscription services that are recurring in nature and something consumers tend to pay without even thinking about it. Apple’s consumer tends to be at the higher-end of the income brackets a demographic that feels inflation less because basic necessities account for a smaller portion of disposable income. While there will be some impact on demand, their customer base is better positioned to weather inflation compared to let’s say Walmart and Target customers. Case in point, in a note to clients, Keybanc analysts said demand appears more resilient for higher-end iPhone models and more “muted” for lower-end models. Moreover, Apple may well feel some impact from rising impact costs, but their inventory issue is the opposite of Walmart and Target as recent sales performance wasn’t restricted due to a need to markdown obsolete inventory but rather a lack of supply in certain product categories including the Mac and iPad. There are benefits of having a logistical master at the helm when supply chain bottlenecks are one of the most pressing headwinds facing the economy. — Programming note: On CNBC television Friday night, the network is doing a special called “Battle for the Consumer.” It airs at 6 p.m. ET. (Jim Cramer’s Charitable Trust is long COST, AMZN, AAPL. 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.

A shopper passes a sign for a Target store in the Tenleytown neighborhood of Washington, DC, on August 17, 2022.
Mandel Ngan | AFP | Getty Images

Target (TGT) missed on earnings. Lowe’s (LOW) provided mixed results. Home Depot (HD) fared better. Walmart (WMT) beat estimates but warned its customers were focusing more on lower prices.
Results were all over the map for this week of retail earnings. But dig a little deeper, and there were some very clear themes — regardless of results — that showed us how the consumer is faring during this period of high inflation. They also provide a window into our holdings with exposure to the everyday consumer, namely Costco (COST), Amazon (AMZN) and Apple (AAPL).

Here are some common threads before we get the bottom line on our Club holdings.

Inventory glut

Customers leave a Walmart Neighborhood Market on August 04, 2022 in Rohnert Park, California.
Justin Sullivan | Getty Images

Covid pandemic shortages eventually became post-pandemic oversupply, which is why the retail industry has been suffering from what Jim Cramer has called an inventory glut recession.

During the pandemic, there was a lot of demand for retail goods. Giants like Walmart and Target overestimated the consumer demand and ended up ordering in excess. Fast forward to today, both retailers have been struggling to sell the surplus and are now sitting on stale inventory. This excess of goods has ultimately put pressure on their profits as they have been forced to mark down goods in order to clear out some of that inventory.

In late July, prior to reporting its fiscal second quarter earnings this week, Walmart cut its quarterly profit expectations and full-year guidance. Similarly, Target issued two warnings — one in May and another in June — preparing investors that its then-upcoming quarterly results would take a hit.

While Walmart reported 8.4% year-over-year growth in sales to $152.86 billion, customers focused on lower-margin product purchases — which in part, weighed on profitability. Though earnings-per-share did beat revised estimates. Walmart CEO Doug McMillon told CNBC on Tuesday, “People are really price-focused now, regardless of income level.” New customers and more frequent trips from households with annual incomes of $100,000 or more helped boost sales.
Target met analyst revenue expectations of $26 billion but reported much lower-than-expected Q2 earnings, a hard miss on its bottom line. On Target’s post-earnings call Wednesday, Chief Growth Officer Christina Hennington said customers are feeling the bite of inflation, stretching their budgets by taking advantage of promotions and consolidating store trips. She said Target shoppers still have spending power, but “confidence in their personal finances continues to wane.”

Both retailers were also compelled to cancel billions worth in orders and pricing down their inventory, so they’re better positioned for fresh inventory as the holidays roll around. Both of them also signaled that customers are mindful of inflation and are adjusting their spending habits accordingly.

Consumers are cautious but are still spending

An employee arranges beauty product gift boxes displayed for sale at a Wal-Mart Stores Inc. location in Los Angeles, California.
Patrick T. Fallon | Bloomberg | Getty Images

This week of retail earnings revealed that consumers are redirecting their spending patterns, but overall demand is resilient. That was seen in Walmart’s commentary and at Home Depot and Lowe’s.

In Walmart’s earnings call, in addition to talking about those mid- to higher-income customers looking for value, management mentioned that shoppers are buying less high-margin discretionary items, like electronics, but they’re spending more on lower-margin like groceries. That reflects a consumer pressured by inflation but still able to spend in a cost-effective way.
Home Depot beat analyst expectations with its second quarter results, delivering its highest quarterly sales and earnings in the company’s history. The home improvement giant reported consumers are spending on renovations, even in a weak housing market. On the post-earnings call, management said customers are not trading down to less expensive items despite inflation. The company saw growth from both professional and do-it-yourself (DIY) projects.
Lowe’s provided mixed quarterly results in its second quarter. It appeared to come in weaker than rival Home Depot since it markets more to DIY consumers who are likely monitoring large purchases. For the quarter, DIY customer sales were impacted in part by lower demand in some discretionary categories, offset by double digit growth among pro contractors. While the mix at Lowe’s is different, CEO Marvin Ellison told CNBC: “Rather than the DIY consumer trading down like you hear from some retailers, in many cases we were seeing the opposite. … The customer’s actually trading up to innovation and trading up for new.”

Margin pressure

A Home Depot store in Livermore, California, US, on Thursday, May 12, 2022. Home Depot Inc. is scheduled to release earnings figures on May 17. Photographer:
David Paul Morris | Bloomberg | Getty Images

Many retailers have been experiencing margin pressures from not only inventory oversupply, but also from elevated inflation across the board. They’re dealing with higher labor costs and input costs — and how much of those they can pass along to consumers in the form of price hikes on their products, which goes to margins.
As mentioned earlier, Walmart and Target mischaracterized the level and mix of inventory they needed and now they’re stuck with stuff they’re forced to mark down. We see this mismanagement as unacceptable because these retailers have the data that could have better prepared them.

Target took an almost 90% hit to earnings-per-share from a year ago, resulting from price markdowns on their excess inventory, which impacted their margins.
In its second quarter earnings statement, Walmart CEO Doug McMillon said the company’s steps to improve inventory levels and put pressure on its profit margins for the second quarter.

However, margin pain for retailers is often times a boon to consumers, who browse the sale racks for bargains, especially in these tough times. While not nearly as bad as Target’s year-over-year EPS decline, Walmart’s Q2 profit of $1.77 per share was a penny shy of the year-ago period.

Retail sales report

A customer shops for eggs in a Kroger grocery store on August 15, 2022 in Houston, Texas.
Brandon Bell | Getty Images

At a higher level view, the government reported retail sales for July this week.

The $682.8 billion in total sales last month was unchanged from June’s revised number. Estimates had called for a 0.1% increase. It’s worth noting these numbers are adjusted seasonally — but not for inflation — and came during a month when the consumer price index also was flat.
Retail sales in July, excluding autos, rose 0.4%, which was much higher than expectations. Month-over-month auto sales fell 3.4%.

Overall, this signals that consumers have been holding up in the face of inflationary pressures. They’re still looking for value in the retail space — perhaps, a reason why big-ticket items like cars and building materials were down for the month — but they’re are not shying away from spending.

Bottom line

Shoppers wait in a check-out line at a Costco wholesale store in Orlando, Florida.
Paul Hennessy | Sopa Images | Lightrocket | Getty Images

What does all this mean for our Club holdings that depend on the consumer? Overall, we see a positive retail readthrough for Costco, Amazon and Apple.

Costco, which we see as a better alternative to Walmart, is holding up in a slowing economy because of its strong inventory management and loyal membership program. We don’t get Costco’s latest earnings until next month. But the company reports sales figures on a monthly basis and they have been solid. Consumers are price-sensitive and looking for deals. One way they can do that is by buying in bulk at Costco. Costco is in a better position than Walmart and Target because by selling bulk, it can offer lower per unit pricing than competitors. Costco has also proven to manage its inventory much better than Walmart and Target meaning that it doesn’t have to mark down selling prices at the expense of profit margins. Investors like that because if they have faith in management, then they will pay a higher multiple for the stock due to the increased confidence they have in future earnings potential.
Amazon has been holding up as consumers continue to shift to online shopping. Like Costco, it has a membership model through Prime. But unlike Costco, Prime offers much more than just great pricing on retail goods such as streaming (think the bundle). Walmart is trying to make its Prime-like offering Walmart+ more attractive by teaming up with Paramount+ to offer a streaming value-add. The other thing Amazon has going for it as we look ahead is that while the company did overbuild in recent quarters, profitability is likely set to improve from here as the company grows into that excess capacity. At the same time, it’s also reducing the size of its workforce and realizing the benefits of the recent pullback in energy prices.
We also expect resilient results from Apple to continue as their anticipated new iPhone release comes this fall. Apple operates retails stores and also sells things direct to consumers online. Apple also offers high-margin subscription services that are recurring in nature and something consumers tend to pay without even thinking about it. Apple’s consumer tends to be at the higher-end of the income brackets a demographic that feels inflation less because basic necessities account for a smaller portion of disposable income. While there will be some impact on demand, their customer base is better positioned to weather inflation compared to let’s say Walmart and Target customers. Case in point, in a note to clients, Keybanc analysts said demand appears more resilient for higher-end iPhone models and more “muted” for lower-end models. Moreover, Apple may well feel some impact from rising impact costs, but their inventory issue is the opposite of Walmart and Target as recent sales performance wasn’t restricted due to a need to markdown obsolete inventory but rather a lack of supply in certain product categories including the Mac and iPad. There are benefits of having a logistical master at the helm when supply chain bottlenecks are one of the most pressing headwinds facing the economy.

— Programming note: On CNBC television Friday night, the network is doing a special called “Battle for the Consumer.” It airs at 6 p.m. ET.
(Jim Cramer’s Charitable Trust is long COST, AMZN, AAPL. 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. More