Hi John, RE: "This market sure could use some good news, "
The CPI report is released tomorrow. We get to see exactly how much inflation was passed to the consumer. The PPI reported the other week, would indicate the CPI will be up more than usual. I'm wondering how productive companies have been at absorbing the increased energy costs - will they simply operate more efficiently (and thus effectively aborb the increased costs) or do they pass it off to the consumer (inflationary)?
Here's some news on one indicator of consumer sales, Wal-Mart:
02/20 16:17 Wal-Mart's 4th-Qtr Net Up 4.5%; Home Depot's Drops
New York, Feb. 20 (Bloomberg) -- Wal-Mart Stores Inc. said fiscal fourth-quarter profit rose by the smallest amount in almost five years...the slowest pace since the first quarter of 1996.
Home Depot, the No. 1 home-improvement chain, said net income dropped 20 percent, its first decline in 15 years.
(Wow)
...
``We do not see any indication that spending will slow further from its current levels,'' Wal-Mart Chief Executive H. Lee Scott said on a conference call.
...
``You'd rather own retail today, which has some positive catalysts, than a sector that's being beaten down every day,'' said portfolio manager Angela Auchey at Federated Investors, which held 3.1 million Wal-Mart shares
(Guess she doesn't own INTC)
Regards,
Amy J |
