Thursday, February 7, 2008

Stocks slip slightly

Stocks were down fractionally, however 79 hit new lows. In the conference call following the earnings release yesterday, Cisco (CSCO) cut forecasts for sales growth rate from 15% to 10% in Q1, down .40. The Labor Dept reported jobless claims were down 22K, but below forecast numbers. D.R.Horton (DHI), largest home builder in the US, reported a Q1 loss due to write downs on inventory (homes) & property. In pre trading news, Walmart (WMT), among others, had gloomy news about retail sales. Because of it's immense size, sluggish sales in Jan for WMT sends a gloomy signal for the economy which affects business around the world.

Speaking of around the world, China is having a rough new year. They're coping with severe winter weather causing power shortages. 78% of their power comes from coal & they are having major problems with coal shortages. One estimate is that weather has already cost the economy $8B. At least they were able to ship the new Toshiba laptop I just bought.

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