Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

Wal Mart

Two Important Economic Signals to Share with My Readers This Morning

By | 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 out fuel, decline by 10.2%. (Source: Wal-Mart Stores Inc., August 14, 2014.)

For its entire 2015 … Read More

How It Pays to Play the Momentum Stocks

By | August 1, 2014

Why Making This Mistake Was a Good MoveI have been following social media company Twitter, Inc. (NYSE/TWTR) since the stock debuted to heightened fanfare on November 7, 2013. The hyped-up momentum play spiked to just over $74.00 on superlative enthusiasm and pure insanity, prior to its subsequent sell-off.

I must admit that Twitter intrigued me as a trade but only if the stock price broke below $30.00, as I have suggested in these pages before. Well, on … Read More

Flight to Safety Rewarding These Top Stocks

By | June 13, 2014

Investors' Flight to Safety Putting These Stocks on TopMy dad is earning a few percentage points on his fixed-income yields. Fortunately for him, that’s sufficient to live on when combined with his monthly pension and savings. He has no mortgage and lives a pretty normal, but somewhat frugal life.

In fact, Dad has always favored the fixed-income market for his investments as he doesn’t like risk. But for many Americans, the need for an ample flow of income … Read More

Why the Chinese Economic Slowdown Matters

By | March 11, 2014

Chinese Economy to See Black Swan Type EventUnderstanding the economic slowdown in the Chinese economy is very important because not only does it impact American companies doing business there, but what happens in the Chinese economy—now the second-largest economy in the world—affects the global economy.

While media outlets tell us the Chinese economy will grow by about seven percent this year (30% below the 10% the economy has been growing annually over the past few years), the … Read More

The Opportunity Coming to the Luxury Retail Stocks

By | February 28, 2014

The Pros and Cons I See in the Retail Sector Right NowWe all know how bad this winter has been so far. The harsh weather across the majority of the country has impacted jobs growth, commerce, housing, and consumer spending.

Of course, with the spring season on the horizon, we’ll soon see if the weak economic metrics mentioned were really an aberration due to the weather—or a sign of further slowing to come.

From what I can tell right now, we … Read More

Financial Reports

The Great Squeeze Play

By | January 31, 2014

The Growing Disparity Between Corporate Profits and WagesAs more and more public companies warn about weak fourth-quarter corporate earnings reports, quite a number of them are resorting to the use of words like “corporate restructuring” or “cost cutting.” At the very core, these cost-cutting measures mean reducing the number of employees working at these companies.

Let’s face the facts: companies on key stock indices are struggling to keep revenue and profits rising. The share buyback “thing” is … Read More

Top Stocks for Investors in an Uncertain Retail Market

By | January 17, 2014

How to Profit from an Uncertain Retail MarketInvestors were happily greeted with a surprise on Tuesday after the reporting of better-than-expected retail sales numbers that suggest the consumer spending market may be alive and well after all.

In December, the headline retail sales reading jumped 0.2%, which was above the Briefing.com estimate calling for a flat result. Even after adjusting for the volatile auto sales, the core retail sales reading surged 0.7% compared to the 0.4% consensus … Read More

Top Market Sectors for 2014

By | January 8, 2014

Transports in 2013 Financials in 2014We won’t really get into the heart of the fourth-quarter 2013 earnings season until late January into early February. Smaller companies typically take longer to report, as they don’t have the large accounting departments that blue chips have.

I’ve noticed that quite a number of Wall Street research analysts have been boosting their 2014 full-year earnings expectations. They’re playing the same old game of cat and mouse with corporations and … Read More

Small Pullback in Money Printing = Big Spike in Interest Rates?

By | December 23, 2013

Yield on 10-Year U.S. Treasury Doubles in Less Than Two YearsQuietly, without much fanfare or news, the bellwether 10-year U.S. Treasury hit a yield of 2.9% this past Friday—double what it yielded in June of 2012. (Source: Treasury.gov, last accessed December 20, 2013.)

Yes, the Federal Reserve only slightly pulled back on its money printing program and interest rates are already spiking.

And the standard 30-year mortgage rate hit 4.52% last week, up from 3.35% in November of 2012. Mortgage … Read More

Discount Merchandisers Facing Earnings Squeeze in 2014?

By | December 13, 2013

What Hurdles Discount Merchandisers Face in New YearI always want to know what Costco Wholesale Corporation (COST) has to say about its business. It’s a great benchmark stock and a barometer on spending.

The company’s latest quarter produced earnings that came in slightly below consensus. The great thing about this business is the membership fees. They are pure gravy and go a long way in padding the company’s bottom line.

In its fiscal first quarter of 2014 … Read More

« Older Entries