Stocks fell Tuesday as investors weighed the highly contagious delta variant's impact on the economic recovery, a tumble in U.S. retail sales in July and a same-store-sales miss by Home Depot (HD) - Get Home Depot, Inc. (HD) Report.
Jim Cramer and TheStreet Senior Portfolio Analyst Jeff Marks discuss how to trade Walmart after earnings.
Walmart: Buy Or Sell?
Cramer said Walmart is a great defensive play. "Kroger (KR) - Get Kroger Co. (KR) Report hit a 52-week high today, so it's a little more defensive than it's been. The defensive plays are working simply because people say the American consumer reined in at once, not because she was poorer but because she was afraid. Because Delta is so scary," he said.
Cramer added that Walmart stock is inexpensive versus peers. He also said a lot of the childhood tax credits were spent at Walmart.
Delta Variant and Markets
Cramer said there is a "reassessment in the market" of how bad the COVID-19 delta variant is.
"I would point out that Dr. Scott Gottlieb [former Food and Drug Administration chief] said that it might be peaking. He has been very right about analyzing peaks. If we all used Binax [widely available COVID-19 antigen self-test] and we all got Regeneron (REGN) - Get Regeneron Pharmaceuticals, Inc. Report, if we got sick then I think we would have peaked. You don't know," he said.
"I would point out that we were very weak yesterday in the morning and we gained strength, this maybe a pattern. We are carrying over what Europe gives us and then we are extrapolating the worst," he added.