Thursday, May 29, 2008

Stocks advance

Stocks up a little on generally tough news. Dow is up 30, advancers ahead of decliners 3-2 & NAZ is up 15. The revised figures for Q1 GDP showed growth at an annual rate of 0.9% vs the original estimate of 0.6%. That's better but not quite as good as some were hoping for. The economy is limping along, not in a recession. Oil was up to over 132 on a government report that inventory supplies fell sharply, inventories were down 8.8MM barrels vs an expected increase. Gas prices hit another record, $3.95 (check the prices using the button in my right column). There have been 22 straight days of record prices.

Sears Holding (SHLD), reported a 56MM loss in Q1, down 2.76. The loss per share was 43¢ vs a 1.43 profit last year. Same store sales for Sears & K-Mart stores were each down sharply. Sears expects sales & margins to be under pressure for the rest of the year. Costo (COST) reported a 32% increase in profits for their Q3 (the last quarter). Earnings were 67¢, beating estimates by 2¢. Discount retailers & warehouses, like WalMart, have been doing better in the slow growth economy.

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