Posted on 07/11/2014 11:20:12 AM PDT by blam
Myles Udland
July 11, 2014
Something seems off in the economy.
Over a three-week span starting next Monday, 72% of the S&P 500's members will report earnings, but some of the early indications about this earnings season, especially from companies highly exposed to the U.S. consumer, have not been encouraging.
On Tuesday afternoon, two companies that are all about consumer spending, Bob Evans and The Container Store, reported earnings that were disappointing.
But even more discouraging were the comments from company executives.
Bob Evans, which wrapped up its fiscal year 2014 in its most recent quarter, said its results were impacted by severe weather (an oft heard refrain during the first quarter), as well as high food costs. In the upcoming year, the company's CFO, Mark Hood, said, "consumer confidence continues to be adversely impacted by ongoing macroeconomic headwinds, including health care costs and unemployment which disproportionately affects lower- and middle- income consumers."
Also on Tuesday afternoon, Container Store CEO Kip Tindell said in the company's earnings release that, "Consistent with so many of our fellow retailer, we are experiencing a retail 'funk.'"
(snip)
(Excerpt) Read more at businessinsider.com ...
Nothing to worry about it is only a “funk”
Nothing to worry about it is only a “funk”
Yet the stock market continues it’s rocket ride. Stunning to say the least...
‘The Great Funk.’ LOL!
The stock market is very high now BECAUSE 78 million workers have NO pension nor retirement AT ALL and so MUST continue to feed their 401K as fast as possible with as much as possible money EVERY MONTH before they (try to) retire in 15 - 10 - 5 years from now.
Today’s stock market “high” is NOT due to future business investments or future business payouts or future economic growth. None of those matter really in today’s prices - only in which stocks and funds go up more than the rest. All will rise.
SO?
Well, when increasing amounts of money MUST GO into the stock market, and the current retirees and investment firms and banks and companies are ALSO ADDING money into the same stock market, stock prices should go up, will go up, and MUST go up. Also, current retirees are selling some stock and bonds and 401K/IRA sales, but not as many as are forced to buy stocks.
Good for NY and the stock bankers, isn’t it?
Good “sound bytes” for Obama, isn’t it?
Good press for the FBI (er, IRS and Fed’s) isn’t it?
BS, the economy is booming. The market reached new highs. Warren Buffet, Bill Gates and that other moron are yearning for more illegals to drive down wages even further. It’s all good!
“Yet the stock market continues it’s rocket ride. Stunning to say the least...”
Thanks to Barry’s printing machine aka QE1, QE2, QE3 and so on.
Luckily, we were bailed out by the coming of the Grand Funk Railroad.
The pool of folks with little or no excess money to spend after keepinng the lights on is becoming larger and larger every day. These are the folks who drive the retail business in this country. How can anyone expect this Bozo scheme to last. Do we Print more paper money 24/7 until a wheelborrow full will buy a loaf of bread?
Evidently yes. But if you can eat thumb drives and heat your house with droids then inflation is not a bother.
I suppose I am the only one amused by the picture accompanying thw article?
Luckily, we were bailed out by the coming of the Grand Funk Railroad.
I dunno. Are we being railroaded, or is he trying to steamroll over us before January of 2017.
:-D
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.