After yesterday's big decline, markets are essentially even. Oil is approaching 124, pausing a bit after the recent run-up. AAA reported gas prices reached another record, over 3.64. The number of newly laid off workers seeking unemployment benefits dropped more than expected last week. The Labor Dept reported applications for unemployment benefits fell to 365K, a decline of 18K from the prior week. Economists had been looking for a decrease of 5K. The number remains high, 400K is considered a solid signal about being in a recession.
Retailers reported sales for last month. Rising oil prices, lower prices for homes & worries about jobs are slowing consumer spending. The best performing ones were Wal-Mart (WMT), a Dow stock, & Costco (COST) but Target (TGT) issued a soft sales report. 19 retailers beat estimates while 9 missed. Discounting is needed to bring in new sales. Toyota ( (TM) reported a 27% decline in profits due to the stronger yen & weaker sales in the US, the first profit decline in 7 years. The stock is down 4.61 as they said things are tough (in the US market). Thornburg (TMA), the troubled major mortgage company, looks like the end is near with a stock price of 85¢. At least lenders have had time to work out plans for dealing with its mortgages.
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