Wall Street Breakfast Podcast: Walmart Links Ozempic To Sales

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This is an abridged transcript of the podcast.

The rise in the use of a class of drugs used for diabetes and weight loss is starting to have an impact on shopper behavior, according to a Walmart (NYSE:WMT) executive.

The CEO of US Operations John Furner tells Bloomberg, said there is "a slight pullback in overall basket" in terms of items purchased and the calories in them.

He added that it's too early to tell how much of an impact the drugs will have.

Diabetes drugs such as Novo Nordisk's (NVO) Ozempic and Eli Lilly's (NYSE:LLY) Mounjaro (tirzepatide) are rising in popularity as they are being used for their weight loss benefits. Along with Novo's (NVO) Wegovy (semaglutide), which is actually approved for weight loss, all are considered GLP-1 agonists.

The drugs allow a person to feel full eating less food.

Walmart (WMT) is able to examine sales patterns using anonymized data on shoppers. Bloomberg explained that Walmart can look at the purchasing changes among those taking GLP-1 agonists and those who aren't.

BlackBerry Limited (NYSE:BB) (BB) will separate its internet of things and cybersecurity businesses into two independently-operated entities.

The decision is the result of a strategic review of its portfolio earlier this year.

The company is pursuing an initial public offering for the IoT business, which includes foundational software in automotive and other verticals, with a launch targeted in the first half of the next fiscal year.

Last week, BlackBerry (BB) reported a more than 20% decline in revenue for its fiscal second quarter earnings. It also posted a non-GAAP loss per share of 4 cents, compared to an expectation of a loss of 5 cents.

The company had previously said the sales disappointment was coming, blaming weakness in its cybersecurity business, primarily due to the inability to close certain large government deals.

Cybersecurity revenue in the quarter came in at $79M. The IoT business brought in revenue of $49M in the quarter, up 9% sequentially, while IoT gross margin increased 400 basis points sequentially to 84%.

Shares are down 23% over the past month.

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As a result, about 1,300 of its employees are now out of work due to the strike, Bloomberg reported.

The news service separately said that General Motors (NYSE:GM) has lost $200M in the strike's first two weeks.

In an indication that GM (GM) is potentially digging in for a prolonged strike, the automaker on Wednesday said that it secured a $6B revolving credit facility with JPMorgan Chase.

Other headlines to look out for on Seeking Alpha:

Alibaba logistics hub in Belgium on watch amid espionage fears - report

Clorox details financial impact of cybersecurity attack

Tobacco stocks may face a test if the UK youth smoking ban gains steam

AT&T said to start evaluating options for hefty DirecTV stake

On our catalyst watch for the day,

U.S. stocks on Wednesday posted a tentative rebound from their slide in the previous session, as dip buyers jumped in and a blistering bond sell-off eased up.

The Nasdaq (COMP.IND) rose 1.35%. The benchmark S&P 500 (SP500) sharply added to gains in the final hour or so, settling 0.81% higher. The Dow (DJI) fluctuated through the day but eventually finished in the green, advancing 0.38%.

Of the 11 S&P sectors, nine ended in positive territory, led by Consumer Discretionary. Energy was the top loser on the back of the fall in crude oil.

The fixed-income markets continued to garner significant attention. The 10-year Treasury yield (US10Y) was down 7 basis points to 4.73%. The 2-year yield (US2Y) was down 10 basis points to 5.05%.

Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the red. The Dow is down 0.3%, the S&P 500 is down 0.3% and the Nasdaq is down 0.3%. Crude oil is down 1% at more than $83 a barrel. Bitcoin is up 0.5%.

In the world markets, the FTSE 100 is up 0.3% and the DAX is down 0.1%.

The biggest stock movers for the day premarket: Rivian Automotive (NASDAQ:RIVN) is down nearly 9% after announcing the issuance of $1.5B in green convertible senior notes due October 15, 2030.

On today’s economic calendar, at 12:00 p.m. the Fed’s Mary Daly will speak at the Economic Club of New York. At 12:15 pm the Fed’s Michael Barr will speak on the topic, "Cyber Risk in the Banking Sector" at an event hosted by the Federal Reserve Bank of Cleveland.