Retailers

Companies that cater to the public by selling various goods are called retailers. This encompasses both large and small stores. Investors look at fashion trends, sales per square feet, the potential to open more stores, inventory levels, and same-store sales data, as well as the ability of retailers to generate loyalty among their customers. Looking at them as a whole, retailers can provide a general idea about consumer spending. If they are selling more, it is considered to be a good sign; when they are selling less, it means consumers are struggling, and there may be rough roads ahead for the economy.


Two Important Economic Signals to Share with My Readers This Morning

By Monday, August 25, 2014
U.S. Consumer Confidence CollapsingA good gauge for me on how consumers in the U.S. economy are faring has always been the statistics coming out of Wal-Mart. Wal-Mart Stores Inc. (NYSE/WMT) reported its operating income in its second quarter (ended July 31, 2014) declined by 2.4%. Its subsidiary, Sam’s Club (wholesale store), saw its operating income, after taking .

The Worst Kept Secret on Wall Street

By Monday, June 2, 2014
Why Retail Stocks Will Get Hit the HardestIn the first quarter of 2014, Retail Metrics, a retail industry research firm, found U.S. retailers missed their corporate earnings estimates by the most since the year 2000! As I have been writing, consumer spending only increases when consumer confidence is rising. Unfortunately, in the U.S. economy today, that confidence is plummeting..

These Two Retailers the Highlights Among Straggling Earnings

By Friday, May 23, 2014
Earnings Shine for These Two CompaniesStraggling earnings reports are revealing more weather-related issues for specific industries (home improvement, for example), but several retailers have been posting really good numbers. Tiffany & Co. (TIF) soared on news of its fiscal first quarter producing global sales growth of a solid 13% to $1.0 billion. Bottom-line.

U.S. Economy to Enter Recession in Next 12 Months or Less

By Monday, April 28, 2014
Consumer Spending Telling Us About U.S. EconomyAn economy is said to be technically in a recession when it experiences two consecutive quarters of negative gross domestic product (GDP) growth. The biggest portion of the U.S. GDP calculation is consumer spending; then comes investments, government spending, and, finally, net of exports. By far, consumer spending is the biggest.

Movie Tickets and New Homes: Why They Are Both in Trouble

By Thursday, April 10, 2014
The Untold Story of the Pinned-Down U.S. ConsumerIn 2013, consumer spending accounted for 67% of U.S. gross domestic product. (Source: Federal Reserve Bank of St. Louis web site, last accessed April 2, 2014.) It’s plain and simple: economic growth cannot be achieved unless consumers are spending. And unfortunately, higher prices and lower discretionary spending are putting .
Sep. 1, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)

17.44

Dow Jones Industrial Average Dividend Yield 2.71%
10-year U.S. Treasury Yield 2.14%

Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.

Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.

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From: Michael Lombardi, MBA
Subject: The $2 Silver Stock Every Investor Should Own!

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