Posted on 09/25/2007 6:11:54 AM PDT by Hydroshock
NEW YORK (CNNMoney.com) -- U.S. stock futures fell Tuesday as signs that consumers may be cutting back fanned recession worries.
Two major retailers warned late Monday about a slowdown in sales. Target cut its forecast for September same-store sales growth, saying that weak traffic will hurt sales, particularly in Florida and the Northeast, two areas that have been hit by the slowdown in housing.
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Meanwhile Lowe's, the No. 2 home improvement retailer, said that "uncertainties" in the market made it prudent to trim its sales and earnings outlook.
Shares of Target (Charts, Fortune 500) fell nearly 4 percent in pre-market trading Tuesday, while Lowe's (Charts, Fortune 500) stock sank about 8 percent.
Art Hogan, chief market analyst at Jefferies & Co., said the warnings from the two retailers shook up investors, who have been looking for warning signs that problems in housing and mortgage markets would start to cut into consumer spending.
"At the end of the day, the chief concern is
(Excerpt) Read more at money.cnn.com ...
Chairman Bernanke, time for the rest of the FED's 50-100 basis-point cuts, Sir.
No it is time to raise rates to help shore up the value od the dollar and keep inflation at bay.
If you pay attention, you can see the NHC blowing on every prospect of a storm, sending their airplanes out to circle fast to help with convection, turning a gust of wind into a named storm. Naming ain't what it used to be, got to fake the facts to match the hysteria.
I wonder which hurricane prediction outfit Soros funds?
As they say, Bull markets are at their best when climbing a Wall of Worry.
All this gnashing of teeth over micro-issues (such as sub-prime and Lowes estimates) by the financial pundits leads me to believe that things are so smooth in reality that they have to search for negative issues on which to report.
MACRO financial numbers are at their best in years.
US multi-national companies are raking in the dough, much of it by selling US products and services overseas.
We’re in a great upswing in technology buying, and gasoline prices in the US are relatively stable and, yes, affordable.
($2.59 a gallon at my local gas station)
House prices might be sliding somewhat, but what the hey, they nearly doubled in the past five years.
Every centrally controlled (e.g.CNN)media outlet is going to recite over and over the "coming recession" and the worst economic parameters they can find. We will hear it from now until Hillary's fifth month in office.
All so certain parties can say "It's the economy stupid."
Actually the US economy is doing OK, employment is down, exports are up. Although the dollar, in the longer term, is doomed to plummet with increased central government dependence and control of the citizen, just like the ruble.
And people don't believe their aren't conspiracies?
My advice: invest in the growing conservatism in Europe, particularly eastern Europe, and certain Asian nations. I'm doing well with investments, but for the naive folks, those who don't believe in conspiracies, and think Americans are still "basically conservative", it's going to get much worse.
America was once the most freedom loving and individually responsible society in the world. That is how it prospered.
Exactly! Who cares if we have a recession, as long as the dollar is strong. How does the dollar do during recessions? You do any research on that?
My garden center is doing 50% more business to date this year than last, and we have so much booked over the next 3 months that we’re going to have a fantastic year.
People may not be buying and selling houses, but they are sprucing up what they have, including landscaping, hardscaping, waterscaping.
Keep an eye on Oct., Nov., and Dec., retail sales. I think we will see much less buying this year in the last 2. Prices are higher in energy and food and wage increases haven’t matched those percent increases and probably will not. I f we experience a colder than normal winter, then it will be significant. Something has to give.
I have seen this before, in hte 1980’s, peole with money could nto buy due to high interest rates so they remodeled instead.
I know, and something else to add. New England is already haveing below freezing nights. I susspect that the winter will not be a mild one.
The economy is unhealthy. Recessionary, maybe, but spooked nonetheless. A mix of actual factors (fuel costs, property tax increases, inavailability of equity credit, housing market downturn, etc) and perceived impingements (’08 election gloom and doom) have impacted spending.
I’ve been spending the past 6 months looking very closely at consumer markets, spending and pressure points, and can say very confidently that a great number of people are rewiring their buying habits and sitting on the sidelines spending-wise until they can make sense of their economic future. A lot of uncertainty out there and my primary data shows wide fluctuations in daily spending the coincide with gas price trends, news headlines, weather, etc. Seemingly little and irrational stimuli are affecting daily retail sales with a degree of volatility not seen in recent years.
Agreed. If you are merely looking to sell your house and buy a new one because you just want a “better” one, you will hold off and improve what you have, thinking that when the conditions are better you will get your improvement money back in any case.
Those who must sell will go ahead, but in this type of market they still improve what they can to increase their price.
The value of the dollar and rhetoric about inflation are straw men used for dimocrapic propaganda.
Dr. Bernanke needs to finish the job so Americans will have faith in their home purchases.
THat faith is long gone for many, and it will not becoming back soon.
Yes, there was about one month of uncertainty as lending/credit markets locked up due to angst over perceived subprime meltdown.
I has largely reversed, and credit is loosening up even as the DOW Industrial reaches near record numbers - AGAIN.
As for gas prices, everyone loves to complain, and the media certainly LOVES to harp on the 'high' gas price issue - but once again, reality shows that gasoline costs in America are LESS than just one year ago.
As for housing, the prices of leveled off (perhaps declined somewhat in some areas of the US) -- but that's a good thing.
Housing cannot go up 35-percent a year, year over year, without dire consequences.
Employment --- I live just north of Philly - and every contractor I know has a work schedule that is packed to the gills.
Jobs are going begging as businesses are so busy they have a hard time keeping up.
Companies are still producing record earnings, as nearly 70-percent of NYSE corps. BEAT P/E expectations during the last quarter, according to CNBC.
Yet people still love to be pessimestic. As evidenced by all these people who claim the financial world is about to come to an end.
Why ? Because Money = Debt
With falling debt levels, there is less money so asset prices must drop.
The Fed will try to prevent falling asset prices at all costs.
BUMP
Oh Well, I will just keep doing my small part to stop them. My wife and I actively paying down our debts.
How does the dollar do during recessions? You do any research on that?
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