Wal-Mart Cuts Forecast for 2nd Time Since August

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Nov. 14 (Bloomberg) -- On today's "The Roundup," Adam Johnson, Cristina Alesci, Julie Hyman, Matt Miller and Olivia Sterns wrap up the day’s top market stories on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Head of the opening.

It looks like more woes for walmart.

They trimmed their profit forecast for the second time since august.

The problem is twofold, it is losing recession-scarred shoppers to discount shores and they have a stalking problem.

They have struggled to keep shelves filled with merchandise.

Shoppers have been prompted to the retailers competition.

There is persistently high unemployment.

People are dropping out of the labor market.

At the end of the day, people have less money in their wallets.

You have to think about the core walmart customer.

Either they are going to a competitor or in some cases, the ticket is lower.

These of the people that have been hit the hardest.

This is huge.

One advantage that walmart has, being a physical retailer is the immediacy of getting something.

There is a debate about how serious the problem is for the stores.

Absolutely.

In terms of getting the inventory and managing the effect of way.

I have the goal of keeping the inventory growth longer than sales growth.

One of the benefits of the physical retailer is that you can get your product right now and you go into the store, you cannot find the product.

Amazon's prices for select toys going into the holiday season, 20% cheaper at walmart.

That is tough to compete with.

I spoke with an analyst and he said the gold standard is calm sales.

For the past three quarters, we have seen slowing store growth.

The reason we saw a rally at macy's was because they beat.

Facebook is proving that it is willing to dig into its heap pockets to reach young people.

They offered to pay about $3 billion for snap chat.

And in case you don't believe it, you can send photos that disappear in seconds.

Snap chat declined the offer.

Facebook offered 700 million dollars for instagram.

There is buzz on the internet.

Did they leave some money on the table?

There's a possibility that the reason the valuation for snap chat would be so high is because instagram set off that race.

That as a major investment.

The fact there are program developers trying to develop apps that will actually resurface.

As opposed to disappear.

What happens when that technology disappears?

There is a case going on in canada where a bunch of teenagers were arrested because they had taken pictures of some of their peers.

The girls thought they were going away.

Guess what, the boys managed to keep them.

Boys will be boys.

Facebook rolled out a program called poke.

We send messages or videos that would disappear within 10 seconds.

It is the same thing, basically.

It went nowhere.

I heard this morning that both tom keene and arthur levitt are signing up on snap chat.

That is not surprising.

They have been using this for a long time to communicate with each other.

The london whale, if only he had used snap chat.

I love it when you do this.

Volt plug-in is evaluating drive system losses.

They are recalling a pickup and an suv.

-- wolf lagging-- volkswagen is evaluating drive system losses.

This is part of a move to change the type of oil that is used.

I don't want to downplay my story but we get big recalls a lot.

They are not always horrible.

If you are doing this to change the kind of oil they use.

You might do this but it does not anger the customers so much.

Whenever you get a recall, how many cars?

If you pay close attention and you are a responsible car or motorcycle owner, there are recalls more often than you know.

I had a recall on a brand-new ducati.

I rest my case.

I have the italian accents, you can keep the german ones.

Let's shift gears.

Jpmorgan, the target of eight justice department was mocked and taunted by twitter users after soliciting questions for none other than jamie lee.

They asked the twitterverse to provide questions for a q and a session with the executive.

Some of the responses -- i love that one.

That one is kind of awesome.

Who pick those out?

There was a lot.

We cannot put them on air air.

There were a lot of serious weighted comments.

This goes to show you how unaware the bank is about the general sentiment and specifically about jpmorgan.

A lot of big companies have been making mistakes in terms of social media.

It is surprising that how many companies do this.

Not many people have affected this many million people from their homes.

You get a bad reputation when you evacuate multiple millions of people in their homes.

They are putting a kind face on it.

Exactly.

Him and he said, how do you get the blood off of your clown suit.

-- how many people said, how do you get a blood off of your clown suit?

Did jamie dimon himself know this was a good idea?

Jamie lee knew about it.

It is kind of a big deal.

I called him out for not doing this despite the fact that he could have.

He did not address that.

I have an idea or two.

He has become so popular in silicon valley.

Don't forget, he was one of the bankers on the facebook ipo.

Meredith whitney, the analyst to forecast a flood of muni bond defaults.

She is on her way to a combat with the help of some very high profile investors.

The billionaire founder of luke crest capital.

He is backing her in a new hedge fund.

Kendell capital got about $50 billion from blue crest capitals.

-- kenbelle got about 50 billion from blue crest capitals.

She called the decline in the housing and the banks.

She made one big famous call and one big famous bad call.

She said that the muni bond market would implode.

That cost hundreds of billions of dollars in two implode.

The muni markets are seeing some distress.

I wonder if she will be vindicated.

She may very will be.

Hundreds of innocent audis, hundreds?

Do you think that is likely to happen?

Ripe before she called it, they outperformed.

It was a bad call.

Then she said oak ridge.

That follows the exact path of wall street.

-- then she said brokerage.

You get an analyst, you get in there with a couple of good also.

It is wall street.

Sometimes.

That is your first trade.

Here is what is coming up next

This text has been automatically generated. It may not be 100% accurate.

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