We're back on [music] Morning Trade Live. Let's focus on retail earnings now. Starting first with Home Depot.The stock is falling in after the big box retailer reported weaker than expected third quarter earnings. The CEO pointing to consumer uncertainty and continued housing market pressure having a negative impact on home improvement demand. So, here's a look at the chart.Here's the price action for the major players in the sector today as well. We've got Lowe's and Costco. Uh we'll have a look at those a ...

Core Insights - Delta Air Lines has updated its full-year EPS guidance to approximately $6, an increase from the previous range of $5.25 to $6.25, and expects free cash flow to be between $3.5 billion and $4 billion, up from $3 billion to $4 billion [1] - The company reported a 9% increase in premium product ticket revenue to $5.8 billion, while main cabin ticket revenue decreased by 4% year over year, although there are signs of improvement in main cabin trends [2][8] - Non-GAAP year-over-year revenue growth for Q3 was 4.1%, exceeding management's guidance of 0% to 4%, and the non-GAAP operating margin was 11.2%, above the guidance range of 9% to 11% [3] Financial Performance - Delta's Q3 earnings report showed strong performance, alleviating concerns about potential weaknesses in main cabin operations, particularly in light of the bankruptcy of budget airline Spirit Airlines [4][5] - The company experienced a rebound in business travel, which increased by high single digits in the quarter, contributing to overall positive business momentum [8][10] - Despite some regional revenue weaknesses, such as a 2% decline in Atlantic revenue and a 3% decline in Latin America, the overall financial results support a bullish outlook for Delta [12][13] Market Implications - Delta's financial results are often viewed as indicators for the broader market, particularly regarding discretionary consumer spending, although it may be misleading to generalize these results to the entire market [5][9][13] - The airline's strategy of focusing on premium offerings has been a key driver of its revenue growth, with management emphasizing the importance of premium product margins [7][11] - The disciplined approach to capacity management among airlines, including Delta, has contributed to a more favorable market environment, particularly for premium segments [10]

Core Viewpoint - Walmart's stock experienced a nearly 3% decline due to negative sentiment in the retail sector following a downgrade of Target by Goldman Sachs, reflecting broader market caution [1][2]. Group 1: Market Reaction - Walmart's share price drop was influenced by a bearish research note on Target, a major competitor in the retail space [1]. - The decline in Walmart's stock was slightly steeper than the S&P 500's 2.2% dip, indicating a general lack of enthusiasm among investors for retail stocks [1]. Group 2: Sector Analysis - Goldman Sachs downgraded Target from a buy to a neutral rating, citing concerns over its reliance on discretionary products, which make up 53% of its 2024 product lineup [2][3]. - The downgrade of Target has caused investors to shy away from the retail sector, despite Walmart and other competitors being more focused on staple products [4]. Group 3: Economic Concerns - The retail industry is facing potential headwinds, particularly from tariffs affecting foreign manufacturers, which could lead to increased prices and reduced consumer spending if tariffs remain in place [5].